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

BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1. NSC (National Savings Certificates) are issued in the denominations of :
a) Rs.100
b) Rs.500
c) Rs.1000
d) Rs.5000 & Rs.10,000 only
e) All the above

2. Who headed the RBI panel that has submitted its report titled 'Data Format for Furnishing of
Credit Information to Credit Information Companies'.
a) Urjit Patel
b) A.K.Sharma
c) Aditya Puri
d) R.Gandhi
e) None of these

3. Which of the following countries has topped the list of countries receiving remittances from overseas workers in the year 2013 as per the World Bank report?
a) Philippines
b) China
c) India
d) Mexico
e) None of these

4. Which of the following banks has re-launched its channel on You- Tube with the aim of strengthening its social media presence?
a) HDFC Bank
b) SBI
c) YES Bank
d) ICICI Bank
e) None of these

5. India's first post office savings bank ATM facility has been recently inaugurated in which of the following places?
a) Chennai
b) Bengaluru
c) Mumbai
d) Delhi
e) None of these

6. Which of the following banks has recently launched 'Branch on Wheels' in Odisha as part their financial inclusion plans to provide banking services in remote villages in the state which are devoid of banking facilities?
a) SBI
b) Axis Bank
c) HDFC Bank
d) ICICI Bank
e) None of these

7. Which of the following banks has become the first Indian private sector bank to set up a branch in China?
a) ICICI Bank
b) HDFC Bank
c) YES Bank
d) Axis Bank
e) None of these

8. RBI has recently hiked the trade related remittance limit from Rs. 2 lakh per transaction to___ transaction with immediate effect?
a) Rs. 3 lakh
b) Rs. 4 lakh
c) Rs. 5 lakh
d) Rs. 6 lakh
e) Rs. 8 lakh

9. The term FTZ stands for?
a) Free Trade Zone
b) Food Trade Zone
c) Foreign Trade Zone
d) Fiscal Trade Zone
e) Financial Trade Zone

10. Which of the following is NOT a public sector bank?
a) Corporation Bank
b) UBI
c) Vijaya Bank
d) Bank of Maharashtra
e) Federal Bank

11. What is the minimum period for Commercial paper can be issued?
a) 7 days
b) 14 days
c) 30 days
d) 90 days
e) One year

ANSWERS:
1) e; 2) c; 3) c; 4) b;
5) a; 6) d; 7) d; 8) c;
9) a; 10) e; 11) a.

Indian Banks and their Headquarter, Heads and Slogan

Name of Bank	Headquarter	Formation	Chairman/Managing Directors	Slogan
Allahabad Bank	Kolkata	1865	Rakesh Sethi	A Tradition of Trust
Andhra Bank	Hyderabad	1923	C. V. R. Rajendran	For all your needs
Bank of Baroda	Baroda	1908	S. S. Mundra	India's International Bank
Bank of India	Mumbai	1906	Vijayalakshmi R. Iyer	Relationship beyondbanking
Bank of Maharashtra	Pune	1935	Sushil Muhnot	One Family, One Bank
Canara Bank	Banglore	1906	R. K. Dubey	Together we can
Central Bank of India	Mumbai	1911	Rajeev Rishi	Central to you since 1911
Corporation Bank	Mangalore	1906	Sadhu Ram Bansal	Prosperity to all
Dena Bank	Mumbai	1938	Ashwani Kumar	Your Trusted Family Bank Taking Banking
Indian Bank	Chennai	1907	T. M. Bhasin	Technology to the Common Man
Indian Overseas Bank	Chennai	1937	M. Narendra	Good people to grow with
Oriental Bank of Commerce	New Delhi	1943	S. Lal Bansal	Where Every Individual is Committed
Punjab National Bank	New Delhi	1895	K. R. Kamath	The name you can bank upon
Punjab and Sind Bank	New Delhi	1908	Jatindraver Singh	Where service is a way of life
Syndicate Bank	Manipal	1925	Sudhir Kumar Jain	Faithful, Friendly
UCO Bank	Kolkata	1943	Arun Kaul	Honours yours trust
Union Bank of India	Mumbai	1919	Arun Tiwari	Good people to bank with
United Bank of India	Kolkata	1950	Deepak Narang, Shri Sanjay Aryan	The Bank that begins with U
Vijaya Bank	Banglore	1931	V. Kannan	A Friend you can bank upon

BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1.    Export Oriented Units can retain ___ % of their export earnings in foreign currency.
    A. 50       

B. 100       

C. 80      

D. 66.67   
    E. None of these

2.    Foreign investment in private banks, (in aggregate including FDI, FII, NRI, etc.) in India is permitted up to ____%
    A. 99       

B. 74      

C. 49        

D. 24
    E. None of these

3.    The minimum shareholding of RBI in SBI should be ___% as per SBI Act.
    A. 50         

B. 59        

C. 51        

D. 55
    E. None of these

4.    RBI pays interest on CRR balances of banks at _____.
    A. Bank Rate      

B. Repo Rate         
    C. Bank Rate minus 2%        

D. Zero %
    E. None of these

5.    The three pillars of the Basel II framework are :
    A. Minimum capital requirements              
    B.  Asset - Liability Management   
    C. Market discipline           
    D. Supervisory review        

E. a, c & d

6.    The Code of Bank's Commitment has been issued by  :
    A. RBI            

B. SBI            

C. IBA       
    D. BCSBI       

E. None of these

7.    For declaring dividend, banks should have a CRAR of at least ____% for the preceding 2 years, and net NPA of less than _____%.
    A. 11, 3     

B.  9,  7    

C. 10,   5     

D. 9,  5
    E. None of these

8.    After ________, foreign banks operating in India will be freed of RBI imposed restrictions on their operations and treated on par with Indian banks.
    A. April, 2008           

B. April, 2009         
    C. April, 2010           

D. April, 2015
    E. None of these

9.    Under Section 19(1) of the Banking Regulation Act, 1949, para- banking activities refer to :
    A. leasing        

B.  hire purchase finance   
    C.  factoring    

D. credit card operations   
    E. only a, b & c

10.    The percentage of profit that a bank is required to transfer to its reserve fund as per Banking Regulation Act is ______%.
    A. 25            

B. 20         

C. 30         

D. 50
    E. None of these

11.    Interest payable on savings bank accounts is?
    A. De-regulated by RBI
    B. Regulated by State Governments
    C. Regulated by Central Govt
    D. Regulated by RBI
    E. Regulated by Finance Minister

12.    The usual deposit accounts of banks are?
    A. Current accounts, electricity accounts and insurance premium accounts.
    B. Current accounts, post office savings, bank accounts and term deposit accounts.
    C. Loan accounts, savings bank accounts and term deposit accounts.
    D. Current accounts, savings bank acco- unts and term deposit accounts.
    E. Current bill accounts and term deposit accounts.

13.Fixed deposits and recurring deposits are?
A. Repayable after an agreed period
B. Repayable on demand
C. Not repayable
D.Repayable after death of depositors
E.Repayable on demand or after an agreed period as per bank's choice

14. Accounts are allowed to be operated by cheques in respect of?
    A. Both savings bank accounts and fixed deposit accounts.
    B. Savings bank accounts and current accounts.
    C. Both savings bank accounts and loan accounts.
    D. Both savings bank accounts and cash accounts only.
    E. Both current accounts and fixed deposit accounts.

15.    Which of the following is correct statement?
    A. No interest is paid on current deposit accounts.
    B. Interest is paid on current accounts at the same rate as term deposit accounts.
    C. The rate of interest on current accounts and savings accounts are the same.
    D. No interest is paid on any deposit by the bank.
    E. Savings deposits are the same as current deposits.

16.    Banking services delivered to a customer by means of a computer control system that does not directly involve banks branch is called?
    A. Universal banking  B. Virtual banking
    C. Narrow banking
    D. Brick & Mortal banking       

E. None

17.    Financial inclusion means provision of ?
    A. Financial services namely payments, remittances, savings, loans and insurance at affordable cost to persons not yet given the bank
    B. Ration at affordable cost to persons not yet given the same
    C. House at affordable cost to persons not yet given the same
    D. Food at affordable cost to persons not yet given the same
    E. Education at affordable cost to persons not yet given the same

18.    When a bank returns a cheque unpaid, it is called?
    A. Payment of the cheque
    B. Drawing of the cheque
    C. Canceling of the cheque
    D. Dishonor of the cheque
    E. Taking of the cheque

19.    Who is the Chairman of the committee constituted by RBI to study issues and concerns in the Micro Finance Institutions (MFI) Sector?
    A. Y.H Malegam  

B. Dr. KC Chakraborty
    C. C. Rangrajan   

D. M. Damodaran
    E. Usha Thorat

20.    Which of the following types of accounts are known as 'Demat Accounts'?
    A. Accounts which are Zero Balance
    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

21.    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.

22.    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

23.    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

24.    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

25.    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

26.    Largest shareholder (in percentage share holding) of a Nationalized bank is ?
    A. RBI            

B. NABARD         

C. LIC
    D. Govt of India         

E. IBA

27.    An account that can be opened by business organisations and also individuals is known as a?
    A. Term deposit     

B. Checking Account
    C. Saving Bank deposit
    D. No Frills Accounts  

E. Current deposit

28.    A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as?
    A. CHAPS        

B. SWIFT        

C. NEFT
    D. SFMS           

E. CHIPS

29.    Buy now & pay later refers to?
    A. Foreign Currency 

B. Internet Banking
    C. US Dollars         

D. Traveler's cheques
    E. Credit Cards

30.    Which one of the following is not 'Money Market Instrument'?
    A. Treasury Bills    

B. Commercial Paper
    C. Fixed Deposit    

D. Equity Shares
    E. None

31.    Which one of the following is a retail banking product?
    A. Home Loans
    B. Working capital finance
    C. Corporate Term Loans
    D. All the above                   

E. None

32.    Finance Ministry has asked the RBI to allow common ATMs that will be owned and managed by non-banking entities hoping to cut transaction costs for banks. Such ATMs are known as?
    A. Black label ATMs
    B. Offsite ATMs
    C. On site ATM's or red ATMs
    D. Third party ATMs
    E. White label ATMs

33.    Technological advancement in the recent times has given a new dimension to banks, mainly to which one of the following aspects?
    A. New Age Financial Derivatives
    B. Service Delivery Mechanism
    C. Any Banking       

D. Any type banking
    E. Multilevel Marketing

34. Which of the following is NOT a function of the Reserve Bank of India?
    A. Fiscal Policy Functions
    B. Exchange Control Functions
    C. Issuance, Exchange and Destruction of currency notes
    D. Monetary Authority Functions
    E. Supervisory and Control Functions

35.    Which of the following is NOT required for opening a bank account?
    A. Identity Proof         

B. Address Proof
    C. Recent Photographs
    D. Domicile Certificate           

E. None

36.    What is the maximum deposit amount insured by DICGC?
    A. Rs. 2,00,000 per depositor per bank
    B. Rs. 2,00,000 per depositor across all banks
    C. Rs. 1,00,000 per depositor per bank
    D. Rs. 1,00,000 per depositor across all bank
    E. None

37.    The Biggest employee in the Private Banking Sector is?
    A. ICICI       

B. HDFC      

C. AXIS Bank    
D. YES Bank      
E. None of these

38.    With reference to a cheque who is drawee?
    A. The bank that collects cheque.
    B. The payee's bank.
    C. The endorsee's bank.
    D. The endorser's bank.
    E. The bank upon which the cheque is drawn.

39. In which of the following fund transfer mechanisms, funds can be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
    A. RTGS          
B. NEFT            
C. TT     
    D. EFT     
E. MT

40.    Banking Ombudsman Scheme is appli- cable to the business of ?
    A. All Scheduled commercial banks excluding RRBs. 
B. All Scheduled commercial banks including RRBs.
    C. Only Public Sector Banks
    D. All Banking Companies  
E. All scheduled banks except private banks.

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

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

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

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

BANKING AWARENESS PRACTICE QUESTIONS

1.    Nationalization of banks aimed at all of the following except?
    A. Provision of adequate credit for agriculture, SME & exports.
    B. Removal of control by a few capitalists.
    C. Provision of credit to big industries only.
    D. Access of banking to masses.
    E. Encouragement of a new class of entrepreneurs.

2.    Which one of the following banks is headed by a Woman CEO?
    A. Bank of Baroda      

B. HDFC Bank
    C. Central Bank of India  
    D. PNB               

E. ICICI

3.    Base Rate is the rate below which no Bank can lend their funds. Who sets up this 'Base Rate' for Banks?
    A. Individuals Banks Board
    B. Ministry of Commerce
    C. Ministry of Finance          

D. RBI
    E. Interest Rate Commission of India

4.    What is a 'Debit Card'?
    A. It is a card issued by a Rating Agency.
    B. It is a card which can be used for withdrawing cash or making payment even in the absence of any balance in the account.
    C. It is a card which can be used for withdrawing cash or making payment at Point of Sales (POS) if there is balance in the account.
    D. It is a card issued to borrowers
    E. It is a card which can be used for making STD calls.

5.    Bad advances of a Bank are called?
    A. Standard accounts     

B. Book debts
    C. Non Performing Assets
    D. Out of order accounts
    E. Overdrawn accounts

6.    Axis Bank is a?
    A. Public Sector Bank
    B. Private Sector Bank
    C. Co-operative Bank    

D. Foreign Bank
    E. Gramin Bank

7.    By increasing repo rate, the economy may observe the following effects ______
    A. Rate of interest on loans and advances will be costlier.
    B. Industrial output would be affected to an extent.
    C. Banks will increase rate of interest on deposits.
    D. Industry houses may borrow money from foreign countries.     

E. All of these.

8.    Increased interest rates, as is existing in the economy at present will_______
    A. Lead to reduction in borrowings
    B. Lead to lower GDP growth.
    C. Mean higher cost of raw materials.
    D. Mean lower cost of raw materials.
    E. Mean higher wage bill.

9.    Which of the following schemes is launched to provide pension to the members of unorganized sectors in India?
    A. Swabhiman           

B. Jeevan Dhara
    C. Jeevan Kalyan    

D. ASHA
    E. Swalamban

10.    A cheque returned for insufficiency of funds. Payee will have right to issue notice and approach court of law for justice under section 138 of which act?
    A. Indian Penal Code
B. Negotiable Instrument Act
    C. Criminal Procedure Code
    D. Payment and Settlement Act
    E. Indian Contract Act

11.Mr. Rajendra had filed a complaint with Banking Ombudsman and is not satisfied with the decision. What is the next option available for him to get his problem redressed?
    A. Write to the CMD of the Bank.
    B. File an appeal before the Finance Minister.
    C. File an appeal before the Banking Ombudsman again.
    D. File an appeal before the Dy. Governor RBI.
    E. Simply close the matter as going to court involves time and money.

12.    Which of the following is an example of Financial assets?
    A. National Saving Certificate
    B. Infrastructure Bonds
    C. Indira Vikas Patra
    D. Krishi Vikas Patra     

E. All of these

13.    Bank branches which can undertake foreign exchange business directly are known as:
    A. Authorized dealers 

B. Foreign dealers
    C. Overseas branches
    D. Approved dealers
    E. Exchange branches

14.    Insurance cover for bank deposits in our country is provided by ____
    A. SBI     

B. Govt of India   
    C. GIC     

D. LIC          

E. DICGC

15.    The Financial Literacy does not include which of the following?
    A. How to invest the funds
    B. How to use the limited funds carefully
    C. How to minimize the risks
    D. How to reinvest the money earned
    E. None of these

16.    'ADB' refers to-
    A. Amedical Development Bank
    B. Amedical Depository Bureau
    C. Additional Debit Balance
    D. Only a & b
    E. Asian Development bank

17.    When a banker talks about CDR, what is he talking about?
    A. Corporate Debt Restructuring
    B. Corporate Debt Rollover
    C. Company Debt Rollover
    D. Corporate Deposit Restructuring
    E. Company Deposit Restructuring

18.    Expand the term ALM as used in Banking/Finance sector?
    A. Asset Liability Management
    B. Asset Liability Maturity
    C. Asset Liability Mismatch
    D. Asset Liability Manpower
    E. Asset Liability Maintenance

19.    Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which of the following industries/ markets?
    A. Capital Market    

B. Banking industry
    C. Commodities market
    D. Money Market        

 E. Mutual funds

20.    What is the maximum period for which domestic term deposits are normally accepted by the banks in our country?
    A. 3 yr  

B. 5 yr  

C. 7 yr 

D. 10 yr  

E.12 yr

21.    If you wish to purchase some US Dollars for your travel abroad, you should approach?
    A. The Ministry of Finance
    B. The US Embassy
    C. Any Bank Branch authorized to do such activity
    D. The Reserve Bank of India
    E. External Affairs Ministry

22.    What does the letter 'L' stands for in the term LAF commonly used in financial/economic news?
    A. Liquidity      

B. Least      

C. Liabilities
    D. Long    

 E. Liquid

23.    Which of the following is not classified as a Commercial Bank?
    A. Public Sector Bank
    B. Foreign Bank   

C. Private Sector Bank
    D. Regional Rural Bank
    E. Urban Cooperative Bank

24.    Which of the following is not the name of the a Banking Organization?
    A. HDFC    

B. IDBI          

C. YES
    D. SEBI     

E. ICICI

25.    Money laundering means
    A. Concealment of income source mainly to avoid income tax
    B. Money acquired from undisclosed sources and deposited in foreign banks
    C. Money acquired from undisclosed sources and deposited in foreign banks
    D. Process of conversion of money obtained illegally to appear to have originated from legitimate sources to convert black money into white money
    E. Money acquired from drug trafficking

26.    Monetary Policy as an arm of the economic policy is administered by
    A. Government of India            

B. RBI
    C. SBI    

D. Govt of the respective states
    E. None

27.    Which of the following is not a primary function of a Bank?
    A. Granting loans
    B. Collecting cheques/ drafts of Customers
    C. Arranging VISA for students for abroad education   

D. Issuing bank drafts
    E. Selling Gold/Silver Coins.

28.    Reserves that can act as a liquidity buffer for Commercial Banks during crisis times are
    A. CAR       

B. CRR       

C. CAR & CRR
    D. CRR & SLR     

E. SLR

29.    The Capital Market of Indian financial system deals with which of the following funds?
    A.  Hedge funds      

B.  Short-term funds
    C.  Long-term Funds
    D.  Government Funds  

E. None of these

30.    Which of the below acts as the principle regulator in the capital market in India?    
    A.  IRDA     

B.  RBI            

C.  SIDBI
    D.  SEBI    

E. None of these

31.    The security which is a claim on the government and is a secure financial instrument guarantees certainty of both capital and interest is called?    
    A.  Gilt-Edged Security     
    B.  Call Money      

C.  Treasury Bills     
    D.  Certificate of Deposits
    E. None of these

32.    Banks generally borrow funds from which of the following money markets to meet the mandatory Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements as stipulated by the Central bank?    
    A.  Notice Money Market     
    B.  Call Money Market    
    C.  Bill Market         

D.  Money Market
    E. None of these

33.    Which one of the following agency is a creditor's rating agency?    
    A.  ICRA     

B.  CARE    

C.  CRISIL     
    D.  All of the Above     

E. None of these

34.    Which of the following bank acts as a government banker?   
    A.  State Bank of India     
    B.  All Public Sector Banks    
    C.  Co-operative Banks     
    D.  Scheduled Banks     

E. None of these

35.    Reserve Bank of India was setup on the recommendations of which of the following commission/committee?    
    A.  Royal Commission     
    B.  Hilton Young Commission    
    C.  Dantwala Committee     
    D.  D R Mehta Commission
    E. None of these

36.    The Central bank of India, RBI, reviews the monetary policy for every   
    A.  Three Months     

B.  Six Months    
    C.  Nine Months       

D.  Twelve Months
    E. None of these

37.    The Deposit insurance facility provided by the DICGC is not available for which of the following    
    A.  LIC            

B.  GIC           

C.  SIDBI     
    D.  NBFCs       

E. None of these

38.    Which of the following is a Develop- ment Bank in India?  
    A.  IFCI      

B.  IDBI    

C.  NHB     
    D.  All of the Above
    E. None of these

39.    The bank which refinances the loans given to the poor and weaker sections to construct or buy houses is    
    A.  SIDBI     

B.  IDBI       

C.  NHB     
    D.  IIBI    

E. None of these

40.    ACH is a nationwide automated electronic system that monitors and administers the process of check and fund clearance between banks. Expand ACH.  
    A.  Automatic Check Clearing House     
    B.  Automated Check House    
    C.  Automated Clearing House     
    D.  Automatic Clearing House
    E. None of these
 

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

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

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

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

BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1. Which of the following is not a debt instrument in banking parlance?
a) a Certificate of deposit
b) Bonds
c) Stocks
d) Commercial papers
e) Debentures

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

3. Which of the following organizations/ agencies is not associated with banking and Finance?
a) SEBI
b) AMFI
c) RBI
d) ECGC
e) ONGC

4. Who amongst the following Padma Bhushan Awardees is a famous banker?
a) Mr. Azim H. Premji
b) Ms. Chanda Kochhar
c) Ms. Kapila Vatsyayan
d) Mrs. Waheeda Rehman
e) Mr. Brajesh Mishra

5. Which of the following has been renamed as "Annual Policy Statement" by the Reserve Bank of India?
a) Busy season banking policy
b) Slack season banking policy
c) Monetary and credit policy
d) Annual statistical report
e) None of the above

6. Which committee has recommended introduction of smart card?
a) Rangarajan committee
b) Saraf committee
c) Nayak committee
d) Pannirselvan committee
e) None of the above

7. Which committee had formulated consultative profile in connection with electronic funds transfer?
a) A.K. Purwar committee
b) Y V Reddy committee
c) K S Shere committee
d) S. A. Dave committee
e) None of the above

8. The process of transformation of physical shares, commercial paper or certificate of deposit into
electronic form is called as:
a) Electronic clearing service
b) Electronic securitization
c) Share truncation
d) Dematerialisation
e) None of the above

9. Providing banking services to a customer without his entrance inside the bank's branch is called
as:
a) Virtual banking
b) Relationship banking
c) Universal banking
d) Mobile banking
e) None of the above

10. Where is the headquarters of "Society for worldwide Inter bank Financial Telecommunication
- SWIFT" situated?
a) New York
b) Los Angels
c) Brussels
d) Hague
e) None of the above

11. Where has National Financial Switch of IDRBT established?
a) Mumbai
b) New Delhi
c) Hyderabad
d) Bangalore
e) None of the above

12. If the employees of the bank go on strike, it results in?
a) Operational risk
b) Employee risk
c) Credit risk
d) Market risk
e) Systemic risk

13. Which of the following is not included in three pillars of BASEL capital accord?
a) Minimum capital requirement
b) Supervisory review
c) Market discipline
d) Core banking solution
e) None of the above

14. When ICICI Limited merged with ICICI bank?
a) 1st August, 2000
b) 1st August 2001
c) 1st August, 2002
d) 1st August, 2003
e) None of the above

15. Which bank has changed its name to AXIS bank limited?
a) Centurion bank
b) Times bank
c) Bank of Punjab Limited
d) Bank of Karad
e) UTI bank limited

16. Times Bank Limited merged with:
a) HDFC Bank
b) Bank of India
c) Punjab National Bank
d) Central Bank of India
e) None of the above

17. Which of the following Banks & Head Offices is not correct?
a) State Bank of Bikaner & Jaipur - Jaipur
b) State Bank of Hyderabad - Hyderabad
c) State Bank of Mysore - Mysore
d) State Bank of Patiala - Patiala
e) State Bank of Travancore - Thiruvananthapuram

18. CCIL stands for:
a) Cement Corporation of India Limited
b) Central Clearing Company Ltd.
c) Clearing Corporation of India Limited
d) Cash Credit facility in Installment Lending
e) None of the above

19. When was Reserve Bank of India Nationalized?
a) 1947
b) 1948
c) 1949
d) 1950
e) 1952

20. Which one of the following is the new sub-category of the commercial real estate sector (CRE) as per the latest RBI directive?
a) Residential projects
b) Commercial projects
c) Industrial projects
d) SEZ projects
e) None of the above

21. In India, the Chit funds are governed / Regulated by ___?
a) RBI
b) Central Government
c) State Governments
d) Local Bodies
e) State Finance Corporation

22. "The bank for a changing world" is the punch line of:
a) BNP Paribas
b) Scotia Bank
c) Royal Bank of Scotland
d) CITI Bank
e) American Express Bank

23. The RBI is also set to introduce a fifth Deputy Governor in the top management of the central
bank. The fifth Deputy Governor will be designated as ___
a) COO (Chief Operating Officer)
b) CFO
c) CEO
d) CAO
e) None of these

24. What is the RBI's model for rating of Indian banks?
a) CAMEL
b) CAMELS
c) CRISIL
d) CARE
e) None of these

25. Oriental Bank of Commerce was established in the year:
a) 1943
b) 1953
c) 1963
d) 1973
e) 1983

26. What is the Punch line of "ICICI Bank"?
a) World's Local Bank
b) We Understand Your World
c) Hum Haina …
d) Serving to Empower
e) Good people to grow with

27. Who is the CMD of Union Bank of India?
a) R. M. Malla
b) S. Raman
c) M D. Mallya
d) T. M. Bhasin
e) Arun Tiwari

28. Which among the following is correct full form of CAS in context with banking markets in India?
a) Cash Authorization Scheme
b) Credit Authorization Scheme
c) Credit Access System
d) Credit Arrangement System
e) Cash Accreditation Scheme

29. A medium term note (MTN) programme is issued to ___
a) Provide loans
b) Raise Funds
c) Sell Equity
d) Purchase shares
e) Any of the above

30. Which among the following regulate the commodity markets in India?
1) RBI
2) SEBI
3) Forward Market Commission
Choose the correct option from the codes given below:
a) Only 1 & 2
b) Only 2 & 3
c) Only 1 & 3
d) Only 3
e) None of the above

31. Which among the following is a major qualitative control measure used by RBI?
a) Bank Rate Policy
b) Open Market Operations
c) Ways and means advances
d) Reserve Ratio Requirements
e) Margin Requirements

32. Which of the following is known as plastic money?
a) Bearer cheques
b) Credit cards
c) Demand drafts
d) Gift cheques
e) None of these

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