Banking Awareness Multiple Choice Questions
1. 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
Answer – (c)
2. 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
Answer – (d)
3. 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
Answer – (c)
4. 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
Answer – (d)
5. 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
Answer – (d)
6. 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
Answer – (a)
7. Open-market operations of Reserve Bank of India refer to?
a) Trading in securities
b) Auctioning
c) Transaction in gold
d) All of these
Answer – (a)
8. Which of the following has introduced a new tool named Data Warehousing and Business Intelligence System for speedy analysis of data and identification of violations?
a) IRDA
b) SBI
c) RBI
d) TRAI
Answer – (b)
9. 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 %
Answer – (a)
10. Which is the first bank to get ISO certificate?
1) ICICI
2) UBI
3) Canara Bank
4) Syndicate Bank
Answer – (c)
11. Kisan Credit Card (KCC) scheme introduced in ……………… has emerged as an innovative credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle – free manner.
a) 1998
b) 2000
c) 2001
d) 1991
Answer – (a)
12. To make KCC a Smart Card cum Debit Card, Government of India had constituted a Working Group under the Chairmanship of ………………
a) C. Ranga Rajan
b) T.M. Bhasin
c) Arundhathi Bhattacharya
d) D. Subba Rao
Answer – (b)
13. If the customer can do all transactions only in a branch and the branch has no online access, it is called ………….
a) Online Banking
b) Internet Banking
c) Virtual Banking
d) Brick and Mortar Banking
Answer – (d)
14. A collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s income, budget and convenient time frame. The art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return is called as ………
a) Portfolio management
b) Credit creation
c) Amortized management
d) Zero account
Answer – (a)
15. Which bank has launched the country’s first contactless debit and credit cards on 7 January 2015?
a) HDFC
b) SBI
c) ICICI
d) Union Bank of India
Answer – (c)
16. Which committee is heading the conversion of Urban Cooperative Banks into Regular Banks?
A. R Gandhi
B. H R Khan
C. Urjit R. Patel
D. S. S. Mundra
Answer – (A)
17. When the conversion rate of our currency goes high in compared to other currency , it is known as-
A. Rupee Appreciation
B. Rupee Devaluation
C. Rupee Demodulation
D. Rupee Depreciation
Answer – (D)
18. In which of the following market does devaluation of currency happen?
A. Fixed exchange rate
B. Floating exchange rate
C. Pegged exchange rate
D. Either A or B
Answer – (A)
19. Which of the following is not the function of Payment bank?
A. Issue of ATM /Debit card
B. Issue of Credit Card
C. Accepts Deposites
D. Provides remittances
Answer – (B)
20. At Present, What is the maximum amount that a payment bank can accept from a depositer?
A. Rs.5 lakhs
B. Rs.1 lakh
C. Rs.2 lakhs
D. Rs.75000
Answer – (B)
21. M-wallet (mobile wallet) application called Buddy lauched by which of the following bank?
A. Axis
B. State bank of Travancore
C. ICICI
D. SBI
Answer – (D)
22. Which of the following will be the co-investor for India Aspiration Fund (IAF) and SIDBI Make In India Loan For Enterprises (SMILE),funds launched by SIDBI?
A. GIC
B. LIC
C. SBI Finance
D. Tech M
Answer – (B)
23. Which of the following Indian company sets it record to be the first comapany to over take its parent company in terms of ‘market valuation’?
A. Mahindra & Mahindra
B. Tata Motors
C. Ashok Leyland
D. Maruti suzuki
Answer – (D)
24. Who among the following is the head of the committee, which is recently set up to suggest measures for cost-cutting and optional utilization of assets of Air India?
(A) Suresh Malhotra
(B) Ravindra H. Dholakia
(C) Nagendra Kumar
(D) Vijay Sinha
Answer – (B)
25. Who is the head of the committee appointed for Capital Account Convertibility in Banks?
(A) M.B. Shah
(B) Mukul Mudgal
(C) M. Damodaran
(D) S.S. Tarapore
Answer – (B)
26. Who among the following is the head of the three member committee of jurists, constituted to give recommendations on amending laws to provide speedier justice and enhanced punishment in sexual assault cases?
(A) Leila Seth
(B) J.S. Verma
(C) Gopal Subramaniam
(D) S.P. Barucha
Answer – (B)
27. Which among the following committee is working on the revision of the Whole sale Price Index?
(A) Saumitra Chaudhuri committee
(B) Mihir Shah committee
(C) Narendra Jadhav committee
(D) Syeda Hameed committee
Answer – (A)
28. The Concept of ‘Universal Banking’ was implemented in India on the recommendations of:
(A) Abid Hussai Committee
(B) R H Khan Committee
(C) S Padmanabhan Committee
(D) YH Malegam Committee
Answer – (B)
29. Which among the following committee has looked inot the maladies affecting the proper functioning of the public distribution systems (PDS) in India?
(A) Suresh Tendulkar Committee
(B) Kaushik Basu Committee
(C) Wadhwa Committee
(D) Rangarajan Committee
Answer – (C)
30. Who among the following is the head of the one-man inquire committee appointed by the government to inquire into reports on the US lobbying activities of Wal-Mart for access to India market?
(A) V.N. Khare
(B) Y.K. Sabharwal
(C) Mukul Mudgal
(D) R.C. Lahoti
Answer – (A)
31. Which bank has launched a co-branded ‘Small Business MoneyBack Credit Card’ for small traders in collaboration with CSC?
1) ICICI Bank
2) HDFC Bank
3) Bandhan Bank
4) DBS Bank
5) RBL Bank
Correct Option : 2
32. A high-level panel led by former RBI governor Bimal Jalan was recently constituted regarding which of the following issue?
1) Reforming Monetary Policy Committee
2) Creation of NPA ledger
3) Policy for Public Credit Registry
4) Capital reserves that the central bank should maintain
5) Digitisation of NPA resolution
Correct Option : 4
33. ALM is concerned with strategic balance sheet management involving all market risks. ‘M’ in ALM stands for____________.
1) Market
2) Management
3) Maturity
4) Maintenance
5) Measurement
Correct Option : 2
34. G5 consists of the members of the International Monetary Fund whose currencies constitute the Special Drawing Rights. Which of the following is not among them?
1) France
2) Japan
3) China
4) United Kingdom
5) United States
Correct Option : 3
35. In which of the following years Reserve Bank Information Technology Private Limited (ReBIT) was found?
1) 2013
2) 2014
3) 2015
4) None of these
5) 2016
Correct Option : 5
36. The Reserve Bank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under LAF. What is the full form of LAF?
(a) Loan Adjustment Fund
(b) Liquidity Adjustment Facility
(c) Long Awaited Funds
(d) Loan Against Funds
Answer – (b)
37. Which of the following is a measure of ‘narrow money’ in India?
(a) M0
(b) M1
(c) M2
(d) M3
Answer – (b)
38. Who is primarily liable on a cheque?
(a) Drawer
(b) Paying banker
(c) Collection banker
(d) Everybody who touches the cheque
Answer – (a)
39.The effect of a crossing a cheque is
(a) The payee can obtain payment only through a bank account
(b) The payee Is compelled to open an account
(c) The payee will have to endorse the cheque to a bank
(d) None
Answer – (a)
40.Truncation of cheques means
(a) scanning of the cheques and transmission of electronic image instead of physical cheque in the clearing cycle
(b) debiting of drawer’s account through internet
(c) Both of the above
(d) none of the above
Answer – (a)
41. Who can file a criminal case against the drawer of a dishonoured cheque?
(a) The payee
(b) The holder in due course
(c) Both of the above
(d) The paying banker
Answer – (c)
42. The drawer of a cheque is always a
(a) bank
(b) company
(c) Firm
(d) customer
Answer – (d)
43. A cheque is considered as stale when if has been in circulation for
(a) more than forty eight hours
(b) more than one year
(c) more than six months unless otherwise specified
(d) more than three months
Answer – (d)
44.Where the signature of the drawer of a cheque is not genuine , such a cheque is called
(a) post dated cheque
(b) stale cheque
(c) forged cheque
(d) all
Answer – (c)
45. “Doing business report” published by –
a) World Bank
b) IMF
c) ADB
d) WTO
Answer – (a)
46. Interest rate “Savings deposit” now a days is decided by –
a) RBI
b) SBI
c) Respective Banks
d) IBA
Answer – (c)
47. “ASBA” stands for –
a) Application supported by bank account
b) Application supported by balance account
c) Application supported by blocked account
d) Application supported by blocked amount
Answer – (d)
48. FCCB stands for –
a) Foreign currency convertible bonds
b) Forex currency convertible bonds
c) Form currency convertible bonds
d) Future currency convertible bonds
Answer – (a)
49. Banking ombudsman is appointed by –
a) Union government
b) RBI
c) Respective state government
d) Exim bank
Answer – (b)
50. How much quantity of coins to be minted decided by –
a) RBI
b) Union government
c) SBI
d) IRDA
Answer – (b)