Banking Awareness

Part 1

Q.1. Which one is not a function of money

A. Price stabilisation

B. Value measurement

C. Transfer of value

D. Store of value

Ans. Price stabilisation


Q.2. Finance Commission, a statutory body, has to be appointed every five years to

A. Define financial relations between the Centre and the State

B. Advice the Finance Ministry how to manage the Union Finances

C. Suggest increases or decreases in taxation

D. Examine the economic viability of taxation

Ans. To define financial relations between the Centre and the State.


Q.3. RRB's are owned by

A. Central government

B. State government

C. Sponser Bank

D. All of these

Ans. All of these


Q.4. The Monetary and Credit Policy is announced by

A. Ministry of Finance in Centre

B. Reserve Bank of India

C. State Bank of India

D. Planning Commission of India

Ans. Reserve Bank of India


Q.5. What does the letter 'e' denotes in the term 'e- banking'?

A. Essential Banking

B. Economic Banking

C. Electronic Banking

D. Expansion Banking

Ans. Electronic Banking


Q.6. Which of the following is the Regulator of the credit rating agencies in India

A. RBI

B. SBI

C. SIDBI

D. SEBI

Ans. SEBI


Q.7. Open market operation refers to

A. Borrowing by scheduled banks from the RBI

B. Borrowing by scheduled banks to industry and trade.

C. Purchase and sale of Government securities by the RBI

D. Deposit mobilisation

Ans. Purchase and sale of Government securities by the RBI.


Q.8. NABARD is a/an

A. Insurance corporation

B. Central government department

C. Bank

D. Financial institution

Ans. Bank


Q.9. The private sector bank which allowed children above 10 years to open savings bank accounts after SBI is

A. IDBI

B. HDFC Bank

C. ICICI Bank

D. Axis Bank

Ans. ICICI Bank


Q.10. The 11 digit alphanumeric code used to make all electronic transaction across India is

A. MICR Code

B. IFSC Code

C. CBS Code

D. BIC Code

Ans.  IFSC Code

Part 2

Q.1. First Bank in India to launch Talking ATMs for differently-able person?

A. Union Bank of India

B. State Bank of India

C. HDFC bank

D. Bank of India

Ans. Union bank of India


Q.2. First Indian bank to open a branch outside India is___.

A. Bank of India

B. Punjab National Bank

C. State Bank of India

D. UCO Bank

Ans. Bank of India


Q.3. 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

Ans. Banking industry


Q.4. Banking functions centrally controlled by the :

A. Central Bank

B. RBI

C. SBI

D. Both [B] and [C]

Ans. RBI


Q.5. The ratio between cash in hand and total assets maintained by the banks is called 

A. SBR (Statutory Bank Ratio)

B. SLR (Statutory Liquid Ratio)

C. CBR (Central Bank Reserve)

D. CLR (Central Liquid Reserve)

Ans. SLR ( Statutory Liquid Ratio)


Q.6. The oldest stock exchange of India is :

A. Bombay Stock Exchange

B. Bangalore Stock Exchange

C. Hyderabad Stock Exchange

D. Ahmadabad Stock Exchange

Ans. Bombay Stock Exchange


Q.7. Which bank gives long term loan to famers ?

A. SBI

B. NABARD

C. Rural Banks

D. Land Development Bank

Ans. Land Development Bank


Q.8. What is a Cross cheque ?

A. which can be encashed only by the  drawee

B. which can be encashed only through a bank

C.which can be encashed only at the State Bank of India

D. which can be encashed only after it has been transferred to another person

Ans. which can be encashed only through a bank


Q.9. Monetary Policy as an arm of the economic policy is administered by

A. Government of India

B. Reserve Bank of India

C. State Bank of India

D. Governments of the respective states

Ans. Reserve bank of India


Q.10. Loan of very small amounts given to low income groups is called:

A.Cash credit

B.Micro credit

C.Simple overdraft

D.No frills loans

Ans. Micro credit