BANKING RELATED GENERAL AWARENESS --IBPS PO/CLERKS - SBI PO/CLERKS

General Awareness

(With special Reference to Banking Industry)

1.   Which of the following schemes is launched to provide pension to people in unorganized sectors in India?

      a) Swabhiman       b) Jeevan Dhara          c) Jeevan Kalyan         d) ASHA        e) Swavalamban

2.   Finance Ministry has asked the Reserve Bank of India to allow common ATM’s that will be owned and managed by non-banking entities hoping to cut transaction costs for banks.  Such ATM’s are known as:

      a) Black Label ATM’s                  b) Offsite ATM’s                c) On site ATM’s or red ATM’s

      d) Third party ATM’s                   e) White label ATM’s

3.   An ECS transaction gets bounced and you are unable to recover your money from your customer under which Act criminal action can be initiated?

      a) Indian Penal Code                                            b) Negotiable Instruments Act               

      c) Criminal Procedure code                                  d) Payment and Settlements Act     

      e) Indian Contract Act

4.   Mr. Rajendra had filed a complaint with Banking Ombudsman but is not satisfied with the decision.  What is the next option before him for getting his matter resolved?

      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

5.   Which of the following is NOT an important function of Reserve Bank of India?

      a) Management of Foreign Exchange Reserves   

      b) Foreign Exchange related current and capital account management  

      c) Devising Foreign Trade Policy of India       

      d) Debt and Cash Management for State Govts.

      e) Regulation of Govt. Securities

6.   Which of the following Statements pertaining to present economic situation of the world is/are True?

a)      China and India are making very good progress on the economic front.  Though India is a little slower than China.

b)      U.K. and almost all European nations are now out of economic crisis.

c)      US has decided to give 3 lakh thousand US dollars to Iraq as a compensation for its unnecessary attack on it.

d)     As WTO is abolished, countries are free to make their own economic cooperation treaties

e)      All are true

7.   India recently signed a Multilateral convention on Mutual Administrative Assistance in Tax Matters.  This will help India in having a strict check on which of the following issues?

      a) Nuclear safety of its plants      

      b) Illegal supply of narcotics and drugs   

      c) Balance of Trade          

      d) Black money stashed abroad

      e) Border trade among SAAR nations

8.   Business Correspondent Framework launched by the Reserve Bank of India is a step in achieving which of the following?

      a) Financial Inclusion                 

      b) Transparency in banking transactions  

      c) Better control over cooperative/ small banks

      d) Providing direct subsidy to consumers of Public Distribution system (PDS)

      e) None of these

9.   Which of the following organizations has recommended that Financial Literacy should be made part of syllabus from High Schools itself?

      a) Securities and Exchange Board of India (SEBI)    

      b) Reserve Bank of India (RBI)  

      c) Indian Bank’s Association (IBA)        

      d) National Bank for Agriculture and Rural Development (NABARD)

      e) State Bank of India

10. Which of the following terms is used in the field of Economics?

      a) Ampere             b) Horse Power           c) Relative Density     d) Arbitrage   e) Joule’s Law

11. Which of the following schemes is launched by the Govt. of India to provide banking services in 73000 villages in India?

      a)ASHA                b) Swabhiman           c) Kutir Jyoti               d) RAY           e) Swavalamban

12. What does the letter ‘D’ denote in the term ‘SDR’ ?(as used in Finance)

      a) Deposits            b) Data                                    c) Drawing                 d) Debt            e) Dealers

13. Total Gross National products divided by the total population is known as which of the following in Economics?

      a) Statutory Liquidity Ratio                     b) Inflation                              c) National Income    

      d) Deflation                                              e) Per capita Income

14. Providing bank finance to Self Help Groups (SHGs) is considered a part of _____

      a) Micro Credit                                        b) Agricultural Finance           c) Mobile Banking     

      d) Rural Banking                                      e) None of these

15. When the expenditure of the government exceeds the revenue, the difference of balance between the two is called_____

      a) Balance of payment      b) Deflation     c) Devaluation     d) Budget deficit    e) Depreciation

16. What does the letter ‘C’ denote in the term ‘ECB’ as used in the banking and financial operations?

      a) Cartel                b) Credit                      c) Control             d) Caution              e) Commercial

17. What does the term Short selling refer to?

a)      Contract with a broker for sale of shares in a rising market.

b)      Hoarding commodities to create artificial shortage and reduce sales.

c)      Selling shares through a broker without actually holding shares generally either in a falling market and /or to induce a bear phase.

d)     Selling shares through a broker in a ‘Bear’ phase of the market.

e)      None of these

18. What does the term Depreciation mean as used in finance / banking operations?

      a) Closure of a Plant due to lock out

      b) Reduction in the value/loss of equipment/plant over a time due to wear and tear

      c) Loss incurred during a year due to plant breakdown

      d) Unusually high repair expensed incurred on the plant during the year

      e) None of these

19. Inflation has become a major area of concern in India these days.  What measures does the Govt. of India/RBI normally take to control the same?

      A) Fixation of maximum price of the commodities

      B) System of Dual prices

      C) Increase in supply of food grains

      D) Control on credit and liquidity in market

      a) Only A              b) Only B        c) Only C        d) B, C and D             e) All A, B, C and D

20. Which of the following is the regulator of the credit rating agencies in India?

      a)   RBI                 b) SBI             c) SIDBI         d) SEBI                      e) IRDA

21. Which of the following cannot be called an organized sector in India?

      a) Nationalized Bank                    b) Regional Rural Bank                      c) Co-operative Bank 

      d) Chits and Money Lenders     e) State co-operative Bank

22. What is the full form of the term IRAC? (as used in financial sector)

      a) Internal Review and Accounting Corpus

      b) Income Recognition and Asset Classification

      c) Industrial Restructuring and Accounting Codes

      d) Investment Rating and Asset Classification

      e) India Revenue and Accounting Codes

23. Which of the following is the indicative RBI rate that is followed in recent years by banks to arrive at their individual interest rates?

      a) Bank Rate         b) Base Rate     c) Bond Rate     d) Prime Lending Rate      e) None of these

24. The first set of Fourteen Nationalized Bank were nationalized in the year _____

      a) 1947                  b) 1935            c) 1969                        d) 1973                        e) 1981

25. In India which one among the following formulates the fiscal policy?

      a) Parliament                                 b) Planning Commission         c) Finance Commission          

      d) Ministry of Finance                e) Prime Minister’s Office

26. Which of the following is the authority for regulation of the Insurance Sector in India?

      a) LIC                   b) SEBI                       c) RBI             d) IDBI                       e) IRDA

27. Which of the following is the largest bank in the private sector category in India in terms of number of branches/volume of business?

      a) AXIS Bank                                           b) HDFC Bank                       c) ICICI Bank          

      d) Kotak Mahindra                                   e) None of these

28. Consumer loans are repaid by borrowers out of:

      a) Other income of the borrower 

      b) Income generated by the financed goods    

      c) Sale of goods financed

      d) Return of the goods financed

      e) None of these

29. The term ‘Power of Attorney’ refers to:

      a) Power of a person

      b) An authority to operate a Bank Account        

      c) An instrument by which a person is empowered to act for another person     

      d) All of these      

      e) None of these

30. Which of the following are the depositories in India handling dematerialized shares?

      A) National Securities Depository Ltd (NSDL)  

      B) Bombay Stock Exchange (BSE)         

      C) Central Depository Services Ltd (CDSL)

      a) Both A and C              b) Only B        c) Only C        d) Both A and B         e) All A, B and C

31. The CRR is maintained in the form of:

      a) Cash balances with RBI                                 b) Cash balance with banks   

      c) Cash balances with branches of banks              d) Cash balances with banks and RBI both  

      e) Cash balance with IMF

32. When RBI lowers credit creation capacity of the system, i.e., increase in CRR/SLR, it is said to be following a:

      a) Tight money policy                             b) Easy money policy              c) Open money policy

      d) Closed money policy                            e) None of these

33. If a farmer avails a loan against pledge of gold ornaments for his agricultural needs, the loan in this case would be which of the following?

      a) Classified as Gold Loan                     b) Consumption loan         c) Granted as agricultural loan

      d) Treated as personal loan                       e) None of these

34. What does the term ‘Kite Flying’ mean?

a)      Doing unauthorized business 

b)      Allowing indiscriminate withdrawals to borrowers   

c)      Permitting withdrawals against uncleared effects, i.e. cheque sent in clearing or to be sent for clearing          

d)     Opening of letters of credit and discounting such LCs for accommodation

e)      Sanctioning large advance limits without proper assessment

35. What is the full form of BIFR?

      a) Bureau for Industrial and Financial Rehabilitation     

      b) Board for Institutional Finance and Rehabilitation     

      c) Board for Investigation and Formal Reconstruction   

      d) Board for Industrial and Financial Reconstruction

      e) None of these

36. Which are the two critical variables that generally go into monetary planning by RBI?

      a) Demand and interest rates                    b) Growth and Inflation                   c) Price and supply

      d) Growth and interest rates                     e) Movement in money market.

37. Who among the following cannot issue Commercial Paper?

      a) FIs                     b) Companies              c) Primary Dealers       d) Banks         e) All of these

38. What do you mean by the term ‘Underwriting’?

a)      The process by which a company either in the private sector or public sector raises money

b)     The process by which investment bankers raise capital from investors, with liability to subscribe to issue in case of need 

c)      The act of subscribing in a public issue by qualified institutional investors or high net worth individuals            

d)     The process by which finance is arranged through private placement of shares       

e)      None of these

39. As per the proposal put up by the RBI, what should be the minimum capital required for opening new banks in the private sector?

      a) 300 crores          b) 250 crores               c) 500 crores       d) 1000 crores         e) None of these

40. What percentage of net bank credit are “domestic commercial banks required to lend to Agricultural” sector?

      a) 12%                   b) 18%                         c) 15%                 d) 10%                    e) None of these

Answers

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

15.d      16.e     17.c     18.b     19.e     20.d     21.d     22.b     23.b     24.c     25.d     26.e     27.c     28.b

29.d      30.a     31.a     32.a     33.a     34.c     35.d     36.b     37.d     38.b     39.c     40.d