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IMPORTANT BANKING QUESTIONS -- IBPSGUIDE





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TOP 100 BANKING AWARENESS QUESTIONS
Important Banking Awareness Questions


1). For using safe deposit locker facilities, bank customers pay
a)  Exchange on locker
b)  Commission on locker
c)  Rent on locker
d)  Safe custody charges
e)  None of these

Answer: c)

2). What is the full form of ECB?
a)  External Cooperative Borrowings.

b)  Extra Cooperative Borrowings.
c)  External Commercial Borrowings.
d)  Extra Commercial Borrowings.
e)  None of these

Answer: c)

3). Which among the following is NOT a credit rating agencies?
a)      Experian
b)     CRISIL
c)      ICRA
d)     FITCH
e)      ONICRA

Answer: a)

4). The definition of 'Banking' is given in _____
a)  Negotiable Instrument Act. 1881
b)  RBI Act, 1934
c)  The Banking Regulation Act, 1949
d)  The Indian Contract Act, 1872
e)  None of these

Answer: c)

5). Which of the following is the least liquid asset ?
a)  Money
b)  Shares
c)  Machinery
d)  Special deposits
e)  None of these

Answer: c)

6). What does cheap rate imply?
a)  Interest are very high
b)  Interest rate are very low
c)  Interest are medium
d)  All of the above
e)  None of these

Answer: b)

7). RTGS as well as NEFT uses

a)  UTR Number
b)  MICR
c)  IFSC
d)  DNS
e)  None of these

Answer: c)

8). Per capita income is obtained by dividing national income by
a)  Area of the country
b)  Total working population
c)  Volume of the capital used
d)  Total population of the country
e)  None of these
Answer: d)

9). Which of the following bank has recently launched a new home loan product “Women Power” with a differential rate of interest exclusively for women customers?
a)  ICICI Bank
b)  HDFC Bank
c)  IDBI Bank
d)  SBI
e)  None of these

Answer: b)

10). Which among the following is a qualitative tool of monetary policy?
a)  Bank Rate
b)  Credit Ceiling
c)  Credit rationing
d)  Cash Reserve Ratio
e)  None of these

Answer: c)

11). How many digits are there in Mobile Money Identifier(MMID)?
a)  7 digits
b)  9 digits
c)  10 digits
d)  11 digits
e)  None of the Above

Answer: a)

12). Which of the following will set up core banking infrastructure for rural banks ?
a)  NABARD

b)  RBI
c)  IDBI
d)  SIDBI


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e)  None of these

Answer: a)

13). 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

e)  Formal Responsibility and Business

Management
Answer: d)

14). The Pre Shipment finance is provided by the banks only to____
a)  Importers
b)  Bank Employees
c)  Exporters
d)  Small Scale Industries
e)  Large Scale Industries

Answer: c)

15). The tax on import and export is known as
a)  income tax
b)  trade tax
c)  custom duty
d)  commercial tax.
e)  None of these

Answer: c)

16). Which report is published by World Bank every year?
a)  human development report
b)  world development report

c)  international finance and development report

d)  world trade development report.
e)  None of these

Answer: b)

17). Which of the following terms is used in banking field?
a)  Interest rate swap
b)  Input devices
c)  Sedimentary
d)  Zero Hour
e)  None of these

Answer: a)

18). Which of the following banks was inaugurated by Mahatma Gandhi in 1919?
a)  Bank of Maharashtra
b)  Bank of Baroda
c)  State Bank of Saurashtra
d)  Union Bank of India
e)  None of these
Answer: d)

19). Money lent for 15 days or more in inter-bank market is called _____________
a)  Term Money
b)  Short Term Money
c)  Call Money
d)  Notice Money
e)  None of these

Answer: a)

20). While discussing investments there is mention of short term government security. What is this type of investment known as ______________
a)  Debenture
b)  Share
c)  Mutual Funds
d)  Treasury Bill

e)  None of these Answer: d)

21). Which bank launched Mobile Bank Accounts in association with Vodafone's m-paisa?
a)  Bank of Baroda

b)  HDFC Bank
c)  ICICI Bank
d)  Punjab National Bank
e)  None of these

Answer: b)

22). Which was the second bank in India with limited liability?
a)  Punjab National Bank
b)  Imperial Bank of India
c)  New Bank of India
d)  State Bank of India
e)  None of these

Answer: a)

23). The Headquarters of Islamic Development Bank is _____
a)  Sohar, Oman
b)  Kuala Lumpur, Malaysia
c)  Jeddah, Saudi Arabia
d)  Baghdad, Iraq
e)  None of these


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Answer: c)

24). Caixa Bank has been headquartered in __________
a)  United Kingdom
b)  Spain
c)  Singapore
d)  South Africa
e)  None of these

Answer: b)

25). Who headed the committee on Credit Information Reports (CIRs)?
a)  Raghuram Rajan
b)  Kaushik Basu
c)  K.V Kamath
d)  Aditya Puri

e)  None of these Answer: d)

26). PJ Naik committee is related to
a)  Refinancing weak banks
b)  Licensing to private bank
c)  Governance of bank boards
d)  Privatization of nationalized banks
e)  None of these

Answer: c)

27). Bank of Rajasthan was merged with
a)  SBI
b)  HDFC
c)  IDBI
d)  ICICI

e)  None of these Answer: d)

28). Who is the MD and CEO of IDBI Bank?
a)  P.S. Jayakumar
b)  Mahesh Kumar Jain
c)  Arun Shrivastava
d)  Arun Tiwari
e)  None of these

Answer: b)

29). “Support all the way” is the tagline of ______________
a)  HDFC Bank
b)  Citi Union Bank
c)  Dhanlaxmi Bank
d)  Catholic Syrian Bank

e)  None of these Answer: d)

30). Which international organization helps in prevention of money laundering?
a)  World Bank
b)  FATF
c)  IMF
d)  ADB
e)  None of these

Answer: b)

31). International Bank for Reconstruction and Development is related to _____
a)  World Bank
b)  ADB
c)  IMF
d)  Federal Bank
e)  None of these

Answer: a)

32). SLR is maintained by banks on which of the following _____
a)  Demand and Time Deposits
b)  Net Demand and Time Deposits
c)  Demand and Time Liabilities
d)  Net Demand and Time Liabilities
e)  None of these
Answer: d)

33). In which year, Nationalization of SBI Subsidiaries took place?
a)  1955
b)  1966
c)  1959
d)  1969
e)  None of these

Answer: c)

34). High powered money is:-
a)  bank's reserves at central bank
b)  all loans and advances of banks.
c)  money held by banks.

d)  currency held by public and reserves with the central bank.

e)  None of these

Answer: a)

35). When the banker talks about CDR, what is he talking about?
a)  Corporate Debt Restructuring
b)  Corporate Debt Roll over
c)  Company Debt Roll over
d)  Corporate Deposit Restructuring
e)  Company Deposit Restructuring

Answer: a)


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36). What does FCCB stand for?
a)  Foreign Currency Convertible Bond
b)  France Currency Convertible Bond
c)  Freight Currency Convertible Bond
d)  All of these
e)  None of the Above

Answer: a)

37). Which among the following is at times mentioned as a kind of Direct Debit Facility?
a)  RTGS
b)  ECS
c)  NEFT
d)  All of these
e)  None of the Above

Answer: b)

38). SEPA Stands for ______

a)   Scottish Environment Protection Agency
b)  Single Euro Payments Area
c)  Scottish Environment Protection Area
d)  Single Euro Payments Agency
e)  None of the Above

Answer: b)

39). Which of the following is the most active segment of the money market in India?
a)  Commercial Paper(CP)

b)  Certificate of Deposit(CD)
c)  Call Money
d)  All of the above
e)  None of the Above

Answer: c)

40). In which of the following cities, The Head Office of FICCI is located?
a)  Hyderabad
b)  Chennai
c)  Kolkata
d)  Mumbai
e)  New Delhi

Answer: e)

41). Loans of very small amounts given to low income groups is called ________
a)  Cash credit
b)  Micro credit
c)  Simple overdraft
d)  No frills loans
e)  Rural credit

Answer: b)

42). What is the full form of REER?
a)  Real Earning Emergent Ratio

b)  Real Elective Effective Ratio
c)  Real Effective Exchange Rate
d)  Role Effective Earned Rate
e)  None of these

Answer: c)

43). In India, forex rates are determined by
a)  Exporters
b)  Demand and supply forces
c)  Importers
d)  All of these
e)  None of these

Answer: b)

44). _________ is a way of transferring personal remittances from abroad to beneficiaries in India
a)  RDA
b)  MTSS
c)  Both (A) and (B)
d)  All of the Above
e)  None of the Above

Answer: b)

45). How many members are there in FATF?
a)  42
b)  43
c)  40
d)  37
e)  39
Answer: d)

46). A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a)  Safe custody
b)  Safe deposit
c)  Locker
d)  Valid safe deposit
e)  None of these

Answer: a)

47). Crypto currency is a _______ .
a)  Plastic Money.
b)  Digital Medium of Exchange
c)  Digital payment
d)  Both A & B
e)  None of these

Answer: b)

48). Banking in India is controlled by:
a)  Reserve Bank of India
b)  Union Finance Commission


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c)  Union Ministry of Finance
d)  Union Ministry of Commerce
e)  None of these

Answer: a)

49). After State Bank of India, which of the following banks has the largest number of offices?
a)  Punjab National Bank

b)  Bank of India
c)  Andhra Bank
d)  Canara Bank
e)  None of these

Answer: a)

50). Which of the following terms is used in banking field?
a)  Interest rate swap
b)  Input devices
c)  Sedimentary

d)  Zero Hour
e)  None of these

Answer: a)

51). Sukanya Samriddhi Yojana was launched in which year?
a)  2016
b)  2015
c)  2014
d)  2013
e)  None of these

Answer: b)

52). The Definition of „Banking‟ is given in _______
a)  Negotiable Instrument Act, 1881
b)  RBI Act, 1934
c)  The Banking Regulation Act, 1949
d)  Indian Contract Act, 1872
e)  None of the Above

Answer: c)

53). On a Cheque instead of two parallel lines only bank‟s name is written is known as _________
a)  Payable to bearer
b)  General Crossing
c)  Special Crossing
d)  Both (B) and (C)
e)  None of the Above

Answer: c)

54). How many Deputy Governors are there in RBI?
a) 2

b)  4
c)  5
d)  10
e)  None of these

Answer: b)

55). Service Area Approach (SAA) is associated With?
a)  Development banks

b)  Branches of commercial banks situated in metro cities

c)  Urban branches of commercial banks

d)  Rural and Semi-urban branches of commercial banks

e)  None of these
Answer: d)

56). Generally, what is the designation of head of public sector undertakings (PSUs) and PSU banks in India?
a)  President
b)  Chairman cum Managing Director
c)  Chairman
d)  Director General
e)  None of these

Answer: b)

57)  . If the Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on credit creation will be:

a)  Increase
b)  Decrease
c)  No impact
d)  All of these
e)  None of the above

Answer: a)

58). The Imperial Bank of India, after its nationalization came to be known as
a)  Reserve Bank of India
b)  State Bank of India
c)  United Bank of India
d)  Indian Overseas Bank
e)  None of these

Answer: b)

59). Which of the following rates are reviewed by the RBI at the time of periodical review of the policy?
·       Bank rate
·       Repo rate

·       Savings bank rate
a)  Only 1

b)  Only 2


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c)  Both 1 and 2
d)  All the three

e)  None of these Answer: d)

60). Expand the term LIBOR as used in financial banking sectors?
a)  Local Indian Bank Offered Rate
b)  London-India Bureau Of Regulations
c)  Liberal International Bank Official Ratio
d)  London Inter Bank Offered Rate
e)  None of these
Answer: d)

61). Cash kept in the currency chest is owned by?
a)  Currency Chest branch bank
b)  State Bank of India
c)  Central Government
d)  Reserve Bank of India

e)  None of these
Answer: d)

62). Which bank has acquired the Sharekhan.com-broking and trading company?
a)  HSBC
b)  BNP Paribas
c)  Deutsche Bank
d)  ING Vysya
e)  None of these

Answer: b)

63). Which of the following institution is meant for small and medium enterprises?
a)  RBI
b)  SIDBI
c)  IFCI
d)  NABARD
e)  None of these

Answer: b)

64). Which of the following is the first commercial bank ?
a)  State bank of India
b)  Oudh Commercial Bank a
c)  Union Bank of India
d)  Indian Bank
e)  None of the above

Answer: b)

65). Which bank has launched the fist contactless debit, credit and multi-currency forex card?
a)  Axis Bank
b)  ICICI Bank

c)  HDFC Bank
d)  SBI
e)  None of these

Answer: a)

66). What is the full form of FATCA?
a)  Forex Account Tax Compliance Act
b)  Foreign Account Tax Compliance Act
c)  Forex Account Total Compliance Act
d)  Foreign Account Total Compliance Act
e)  None of these

Answer: b)

67). Interest payable on savings bank accounts is-

a)  decided by banks without following any conditions by RBI.

b)  not regulated by RBI.
c)  regulated by central government.

d)  decided by banks following the guidelines of RBI

e)  None of these
Answer: d)

68). The appointments of Banking Ombudsman will be carried out by which of the following?
a)  Finance Ministry
b)  RBI
c)  Govt. of India
d)  SEBI
e)  None of these

Answer: b)

69). If the rate of inflation increases then the-
a)  purchasing power of money increases.
b)  purchasing power of money decreases.

c)  purchasing power of money remains uneffected.

d)  All of these
e)  None of these

Answer: b)

70). In India, National income is estimated by ?
a)  Planning Commission
b)  Indian Statistical Institute
c)  Central Statistical Office
d)  National Sample Survey Organisation
e)  None of these

Answer: c)

71). Medium-term industrial finance refers to the funds required for a period of one year to ________
a) 6 years


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b)  2 years
c)  3 years
d)  4 years
e)  5 years

Answer: e)

72). What does the acronym IFCI mean?
a)  International Finance Corporation of India
b)  Industrial Finance Corporation of India
c)  Institute of Financial Consultants of India
d)  Industrial Finance Council of India
e)  None of these

Answer: b)

73). Banks are required to provide loans to the priority sector upto a specified limit. What is the limit for public sector bank?
a)  50%
b)  20%

c)  40%
d)  10%
e)  None of these

Answer: c)

74). Which of the following bank has its headquarters in Tamil Nadu?
a)  Dhanalakshmi Bank
b)  Karur Vysya Bank
c)  South Indian Bank
d)  Catholic Syrian Bank Ltd
e)  None of these

Answer: b)

75). Industrial Finance Corporation of India, is an Indian government owned ______
a)  Private Bank
b)  Scheduled Bank
c)  Development Bank
d)  All of these
e)  None of these

Answer: c)

76). If a crossed cheque is presented for payment ______________

a)  It can be paid across the counter in another bank

b)  Cash can be paid across the counter to the presenter

c)  It can be paid only through a banker

d)  Cash can be paid across the counter to the presenter

e)  None of these

Answer: c)


77). Which of the following scheme was formulated by RBI?
a)  Banking Ombudsman Scheme
b)  Jan Dhan Yojana
c)  MUDRA Bank Yojana
d)  Boutique Financing Scheme
e)  None of these

Answer: a)

78). A transfer of money from a migrant worker to their families or other individuals in their home countries is known as _________
a)  Inward Remittance

b)  Foreign Remittance
c)  Commercial banking
d)  Wholesale banking
e)  None of these

Answer: b)

79). While discussing investments there is mention of short term government security. What is this type of investment known as ______________
a)  Debenture
b)  Share
c)  Mutual Funds
d)  Treasury Bill

e)  None of these Answer: d)

80). Regional rural banks are managed by ______?
a)  The Central Government
b)  Sponsored Bank
c)  The State Government
d)  All of the above

e)  None of the above Answer: d)

81). Which of the following is a fully owned subsidiary of RBI?
a)     NABARD
b)     SIDBI
c)     IDBI
d)     NHB
e)     None of these
Answer: d)

82). Which of the following has become the first Indian lender to complete a banking transaction using Blockchain technology?
a)  HDFC Bank
b)  ICICI Bank
c)  Axis Bank


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d)  Federal Bank
e)  YES Bank

Answer: b)

83). The main mandate of Payments Banks is to offer which of the following?
a)  Lending services
b)  Credit cards
c)  Bancasurance service
d)  Remittance services

e)  None of these Answer: d)

84). Under the RBI,s SDR scheme, banks can convert their loans into equity, acquire a majority stake in the firm and bring in new promoters, Here the term SDR means
a)  Systematic Debt Restructuring
b)  Special Debt Restructuring

c)  Supplementary Debt Restructuring
d)  Strategic Debt Restructuring
e)  None of these
Answer: d)

85). What is “Stagflation”?
a)  inflation with growth
b)  deflation with growth
c)  inflation after deflations
d)  inflation with depression
e)  None of the above

Answer: c)

86). Usually, the validity period of an Income Tax Refund Order is?
a)  1 months
b)  2 months
c)  3 months
d)  6 months
e)  None of the above

Answer: c)

87). Money laundering is related to ------------------- ---------

a)  To reduce the number of families which lives below poverty line

b)  To reduce the NPA of Banks
c)  To reduce the Black Money
d)  To reduce the unemployment rate.
e)  None of these

Answer: c)

88). NAMA word is related to which organisation ? a) World Trade Organisation

b)  UNCTAD
c)  International Monetary Fund
d)  World Bank
e)  None of these

Answer: a)

89). Service Area Approach (SAA) is associated With?
a)  Development banks

b)  Branches of commercial banks situated in metro cities

c)  Urban branches of commercial banks

d)  Rural and Semi-urban branches of commercial banks

e)  None of these
Answer: d)

90). When was the 2nd phase of nationalization of banks done?
a)  15th April 1980
b)  25th june 1969
c)  20th Aug. 1979
d)  15th Aug. 1980
e)  None of these

Answer: a)

91). The object of introducing base rate by RBI is_____.
(A)  Enhancing transparency in lending rates of banks

(B)  Enabling better assessment of transmission of monetary policy

(C)  Keeping interest rates low
a)  A and B
b)  Only C
c)  Only B
d)  All of above
e)  None of these

Answer: a)

92). What is the full form of LERMS ?

a)  Liberalised Exchange Rate Management System

b)  Long Elimination Reserve Management System

c)  Liberalised Extended Related Management Stock

d)  Linguistic Exchange Reserve Management Scenario

e)  None of these

Answer: a)


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93). Certificate of Deposit (CDs) and Commercial Paper (CPs) are the instruments widely used in which of the following financial sector market..?
a)  Credit Market
b)  Stock Market
c)  Corporate Debt Market
d)  Money Market
e)  Forex Market
Answer: d)

94). To authenticate a Digital Signature in Cheque Truncation System (CTS), which of the following keys are used..
a)  Private Key

b)  Public Key
c)  Master Key
d)  All of these
e)  None of these

Answer: a)

95). Payment of a cheque cannot be made on a cash counter of the bank if the cheque is:-
a)  bearer
b)  cross
c)  order
d)  All of the above
e)  None of these

Answer: b)

96). The nature of convertibility of the Indian Economy is ______.
a)  Convertibility at capital account
b)  Convertibility at trade account
c)  Free Convertible
d)  Convertibility at current account
e)  None of these

Answer: d)


97). SEBI is related to _________.
a)  Bank
b)  Government of India
c)  Share Market
d)  State Government
e)  None of the above

Answer: c)

98). Foreign Currency which has a tendency of quick migration is called-
a)  Fiat Currency
b)  Soft Currency
c)  Token Currency
d)  Hot Currency

e)  None of the above Answer: d)

99). The term „Paper Gold‟ means ________________________
a)  Paper with gold coating

b)  Gold Currency
c)  Paper currency
d)  Special drawing rights of the IMF
e)  None of these
Answer: d)

100). Current deposits are also known as _______________
a)  Time Deposits
b)  Demand Deposits
c)  Recurring Deposits
d)  Fixed Deposits
e)  None of these

Answer: b)

















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