BANKING AWARENESS PRACTICE MCQs

1.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.

2.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

3.Where is the headquarters of International Monetary Fund?
a) Geneva
b) Paris
c) London 
d) Manila
e) Washington DC

4.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

5. 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

6.Banks recover term loan from the parties in EMIs. What does the letter 'E' represent in the term?
a) Easy
b) Effective
c) Equated 
d) Essential
e) Economical

7.What is the Bank Rate at Present?
a) 2%
b) 4%
c) 8.25%
d) 8%
e) None of these

8.Which of the following is not a scheduled commercial bank?
a) IDBI 
b) AXIS
c) HDFC
d) NABARD
e) Kotak Mahindra Bank

9.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) All of these

10.Who amongst the following Padma Bhusan awardees is a famous Banker?
a) Azim H Premji
b) Kapila Vatsyayan
c) Chanda Kochhar
d) Waheeda Rahman
e) Brajesh Mishra

11.Which of the following Acts has specially been launched to facilitate banks in recovery of bad loans?
a) RBI Act
b) Banking Regulation Act
c) Companies Act 
d) Income Tax Act
e) SARFAESI Act

12.The financial assistance or loans of Rs. 10,000 by a bank to a very small borrower will be called?
a) Business Finance
b) Govt. Finance 
c) Micro Finance
d) Small Finance 
e) KYC finance

13.Who amongst the following cannot work as a Business Correspondent as given in the scheme launched by the banks ?
a) Kirana Store
b) Post Office
c) Self Help Group 
d) A Bank Officer
e) Co-operative Society

14. Some banks are financing big projects like construction of roads, bridges etc. Finacing 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

15.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) RTGS 
b)SMS alert
c) Demat Account
d) ATM/Debit card 
e) Number Portability

16.Which of the following is NOT a Nationalised bank?
a) Union Bank of India
b) Central Bank of India
c) YES Bank
d) Syndicate Bank
e) Indian Bank

Answers:

1) b; 2) b; 3) e; 4) b; 5) e; 6) c; 7) c; 8) d; 9) c; 10) c; 
11) e; 12) c; 13) d; 14) a; 15) e; 16) c.