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BANKING AWARENESS --100 QUESTIONS WITH ANSWERS

 SOURCE;
https://www.facebook.com/groups/264817153708470/permalink/680751602115021/

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100 Objective Questions( BANKING AWARENESS )
1) What is Shadow Banking?
Ans :- Financial transactions and other activities of non-banking financial intermediary,
2) Devaluation of Mudra –
Ans :- Increases the exports and decreases the imports of a country,
3) The RBI does not transact the business of which State government?
Ans :- Jammu and Kashmir,
4) A PAN has initially a five-alphabet series like AFZPK 7190 K. Here P stands for –
Ans :- Individual,
5) Long-term fiscal policy was announced by which Finance Minister of India?
Ans :- VP Singh,
6) The National Payment Corporation of India (NPCI) has launched a mobile based payment facility. This facility is known as –
Ans :- IMPS,
7) Bad loans in banking terminology are generally known as –
Ans :- NPA,
8) The controlling authority of government expenditure is –
Ans :- The Finance Ministry,
9) Effective Revenue Deficit was introduced in the Union Budget of –
Ans :- 2011-12,
10) Interest payment is an item of –
Ans :-Revenue expenditure,
11) Foreign currency which has a tendency of quick migration is called –
Ans :- Hot currency,
12) Ad hoc Treasury Bill System of meeting budget deficit in India was abolished on –
Ans :- 31st March, 1997,
13) Convertibility of the rupee implies –
Ans :- Freely permitting the conversion of rupee to other major currencies and vice versa,
14) Interest on savings bank account is now calculated by banks on which basis?
Ans :- Daily product basis,
15) Which is the largest shareholder (in percentage shareholding) of a nationalized bank?
Ans :- Govt. of India,
16) Banks in our country normally publicise that additional interest rate is allowed on retail domestic term deposits of which citizens?
Ans :- Senior citizens,
17) Lending to Micro Finance Institutions by Bank considered as finance to which sector?
Ans :- Priority Sector,
18) What is money laundering?
Ans :- Conversion of Money which is illegally obtained,
19) Which is a measure taken by Reserve Bank of India to control inflation in our country?
Ans :- Raising of Repo / Reverse Repo Rate,
20) What type of loan is granted by banks for purchase of white goods?
Ans :- Consumer durables loan,
21) What are fixed deposits and recurring deposits?
Ans :- Repayable on demand,
22) Which accounts are allowed to be operated by cheques?
Ans :- Savings bank accounts and current accounts,
23) What is Mortgage?
Ans :- Security on immovable property for a loan given by a bank,
24) Which will setup sore banking infrastructure for rural banks?
Ans :- NABARD,
25) What is the name of cheque when a bank returns unpaid?
Ans :- Dishonor of the cheque,
26) Which state became the first state in the country to launch RBI’s e-payment system for commercial tax payers?
Ans :- Karnataka,
27) Interest payable on savings bank accounts is regulated by which bank?
Ans :- RBI,
28) Many times we read about Hawala transactions in newspapers. Hawala in India is prohibited under the provision of which Act?
Ans :- Foreign Exchange Management Act,
29) Which is material alteration of a negotiable instrument?
Ans :- Converting an order cheque to bearer cheque,
30) Which loan constitutes the largest percentage of Retail loans in India?
Ans :- Home loans,
31) Credit risk to the bank is high from which of these cards?
Ans :- Credit cards,
32) Which is a Credit Card Association?
Ans :- Master Card,
33) What is the Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as?
Ans :- Exchange rate,
34) Which are the bank branches that can undertake foreign exchange business directly are known as in foreign exchange?
Ans :- Exchange branches,
35) By which is insurance cover for bank deposits in our country provided?
Ans :- DICGC,
36) Which is the loan of very small amounts given to low income groups?
Ans :- Micro credit,
37) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related to which of the following industry/ market?
Ans :- Banking industry,
38) What is the maximum period for which domestic term deposits are normally accepted by banks in our country?
Ans :-10 years,
39) Monetary Policy as an arm of the economic policy is administered by which bank?
Ans :- Reserve Bank of India,
40) Which reserves can act as a liquidity buffer for commercial banks during crisis times?
Ans :- SLR,
41) By whom are Savings bank accounts opened?
Ans :- Individuals for savings purposes,
42) Many a times we read in the news paper about CASA deposits of banks. CASA what are deposits?
Ans :- Demand deposits,
43) Assume that Reserve Bank of India reduces the Bank Rate by 1%, what will be its impact?
Ans :- More liquidity in the market,
44) Whose signature is found on a 50 rupee currency note in India?
Ans :- Governor, RBI,
45) Which institution is involved mainly in granting Housing Loans?
Ans :- HDFC,
46) Almost all banks in our country have introduced which facility for granting crop loans to farmers?
Ans :- Kisan Credit Cards,
47) What is meant by financial inclusion?
Ans :- Making available banking services at an affordable cost,
48) Which agency/organization in India maintains the Micro. Finance Development and Equity Fund?
Ans :- National Bank for Agriculture and Rural Development (NABARD),
49) A bank branch receives a counterfeit note of Rs. 100 from the customer, which customer wants it back. Which action should be taken by the Bank?
Ans :- Will impound and not return,
50) In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
Ans :- Microfinance Institutions,
51) What is the mean of Bad debts?
Ans :- Amounts owed to a company that are not going to be paid,
52) What is the maximum permissible limit for investment in PDF account in a financial year?
Ans :- Rs. 150000,
53) In our country, till when a cheque remains valid for payment for from the date of issue?
Ans :- 3 months,
54) The Govt. of India has acquired RBI’s stake in one of the major banks of India. Which that bank?
Ans :- State Bank of India,
55) Credit Cards are known by which another name?
Ans :- Plastic money,
56) On domestic term deposits, banks in our country generally offer additional rate of interest on term deposits from which citizens?
Ans :- Senior citizens,
57) Which instrument cannot be transferred from one person to another by endorsement?
Ans :- Fixed Deposit Receipt,
58) Crossing applies to which instrument?
Ans :- Cheques,
59) Salary payable by Government of India to an Indian Citizen for services outside India –
Ans :- Is taxable in India,
60) Which asset can be mortgaged?
Ans :- Land and Building,
61) Which is foreign bank having offices/branches in India?
Ans :- Standard Chartered Bank,
62) Basel-II norms are associated with which aspect of the banking industry?
Ans :- Risk management,
63) If PAN details are not provided, the TDS is deducted at which rate?
Ans :- 20%,
64) What does the lowering of Bank Rate by the Reserve Bank of India leads to –
Ans :- More liquidity in the market,
65) By which bank is the rate of interest on Savings Bank Account stipulated? –
Ans :- RBI,
66) Which bodies regulates monetary policy in India?
Ans :- Reserve Bank of India,
67) Resurgent India Bonds were issued in US Dollar, Pound Sterling and –
Ans :- Deutsche Mark,
68) Currency market is regulated by the Reserve Bank of India (RBI), while currency futures are jointly regulated by the RBI and which other banks ?
Ans :- SEBI,
69) A bank without any branch network that offers its services remotely through online banking, telephone/mobile banking and inter-bank ATM network alliances is known as -
Ans :- Universal Banking,
70) The present Indian monetary system is based on –
Ans :- Minimum Reserve System,
71) In India, which is regulated by the forward Markets Commission?
Ans :- Commodities Futures Trading,
72) Goodwill account is a –
Ans :- Real account,
73) Financial year in banks is a period from –
Ans :- April to March,
74) If saving exceeds investment, how will the national income?
Ans :- Remain constant,
75) ... is the rate of which the central bank of a country (Reserve Bank of India) lends money to commercial banks in the event of any shortfall of funds -ans :-Repo Rate,
76) How does a decrease in SLR affect the market?
Ans :- Liquidity increases,
77) What does DTL stand for in the field of banking?
Ans :- Demand and Time Liabilities,
78) Real time settlement of fund transfer is known as –
Ans :- RTGS,
79) In banking business, when the borrowers avail a Term Loan, Initially they are given a repayment holiday and this is referred to as -
Ans :- Moratorium,
80) Interest below which a bank is not expected to lend to customers is known as -
Ans :- Base Rate,
81) Interest on Savings deposit nowadays is -
Ans :- Fixed by the respective Banks,
82) Banking Ombudsman is appointed by -
Ans :- RBI,
83) Bank deposits that can be withdrawn without notice are called -
Ans :- Demand deposits,
84) Suvidha Fixed Deposit scheme was launched by which bank?
Ans :- IDBI,
85) What does Demonetization mean?
Ans :-Withdrawal of currency from circulation which is done to ambush black market,
86) Increase in cash reserve ratio leads to -
Ans :- decrease in bank credit,
87) The Reserve Bank of India came into existence on -
Ans :- April 1, 1936,
88) How many banks were nationalized in 1969?
Ans :- 14,
89) The Reserve Bank of India issues notes under the following note issue method -
Ans :- Minimum reserve system,
90) The place where bankers meet and settle their mutual claims and accounts is known as -
Ans :- Clearing House,
91) Banks in India were nationalised for the first time in the year -
Ans :- 1969,
92) In India since Independence -
Ans :- the rate of savings and investment have gone up,
93) When was the IDBI ( Industrial Development Bank of India ) instituted?
Ans :- 1964,
94) When was the Reserve Bank of India taken over by the Government?
Ans :- 1948,
95) Bank rate is the rate of interest -
Ans :- At which Commercial Banks borrow money from RBI,
96) The highest dnomination of currency notes in circulation as legal tender in India is a present -
Ans :- Rs. 1000,
97) Who headed the Committee on Computerisation in Indian banks (1988)?
Ans :- M. Narasimhan,
98)The Reserve Bank of India issues -
Ans :- all the currency notes except the one rupee note,
99) The main function of the Exim Bank is -
Ans :- to promote exports and curtail imports,
100) A Bank's Fixed Deposit is also referred to as a -
Ans :- Term Deposit,


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