BANKING AWARENESS -- SBI CLERKS MAIN AND SBI PO MAIN
GENERAL
AWARENESS
(With
Special Reference to Banking Industry)
1. Which of the
following is known as narrow money?
a) M3 b)
M4 c) M1 d) M5
e) None of these
2. Which of the
following section defines offence of money laundering?
a) Section
3 b) Section 14 c) Section 7 d) Section 4 e) None of these
3. What is the
notified amount for the auction of 364-day treasury bill?
a) 300
crore b) 400 crore c) 100 crore d) 500 crore e) None of these
4. Which among
the following is an unsecured promissory notes?
a) Commercial
papers b) Certificate of deposits c) Loan
d) All of the above
e) None of the
above
5. One can enjoy
the “overdraft facility” in :
a) Fixed Deposit
Account b) Current Account c) Saving Account d) Recurring Account
e) None of the
above
6. ……… is known
as the commercial capital of India.
a) Bengaluru b) Delhi
c) Calcutta d) Gujarat e) None of the above
7. CRAR stands
for :
a) Capital to
Risk (weighted) Assets Ratio b) Credit
Risk Account Ratio
c) Commercial
Risk (weighted) Assets Ratio d) Cross
Research And Recession
e) None of the
above
8. In CAMELS, E
stands for what ?
a) Equity b) Earnings
c) Equal d) Eligibility e) None of these
9. As we know
that CARE is a well-known rating company but how many officers of CARE are
located in India?
a) Seven b) Six
c) Five d) Nine
e) None of these
10. When was the
first nationalization of banks done?
a) 1st
July, 1959 b) 8th October,
1960 c) 19th July, 1969 d) 2nd October, 1974
e) None of the
above
11. What is the
time taken for effecting fund transfer from one account to another under RTGS?
a) Two
hours b) Five hours
c) Nine hours d) No
time-boundation e) None of the above
12. Commercial
papers are normally issued in the multiple of ……. crore.
a) 10 b) 5
c) 15 d) 2 e) None of these
13. Headquarters
of WTO is located in …….. .
a) Washington
D.C. b) Singapore c) Paris
d) Geneva e) None of the above
14. Which of the
following is known as highest or apex body of co-operative banks?
a) State
Co-operative Banks b) Primary Credit
Societies c) Central Co-operative Banks
d) Local
Co-operative Banks e) None of the above
15. Small
Industries Development Bank of India (SIDBI) provides refinance facilities
under ARS. What is the full form of ARS?
a) Automatic
Refinance Scheme b) Allocation and
Refinance Solutions
c) Automatic and
Refinance Solution d) Allocation and
Refinance Scheme
e) None of the
above
16. Decline in
the price of goods and services is technically known as :
a) Deflation b) Inflation c) Negative growth d) Discount yield e) None of the above
17. Which of the
following is/are the component(s) of Gross Domestic Capital Formation (GDCF)?
i) Gross domestic
saving ii) Net capital flow iii) Direct foreign investment
a) Only (i) b) Only (ii) c) Only (iii) d) Both (i) and (iii) e) Both (i) and (ii)
18. Small scale
industries like handicraft and cottage industries account for nearly what per cent
of the country’s exports?
a) 35%
b) 20% c) 25% d) 50%
e) None of these
19. Index
“Residex” is associated with :
a) share
prices b) mutual fund prices c) price inflation index d) land prices
e) commodity
prices
20. Participatory
Notes (PNs) are associated with which of the following?
a) Consolidated
Fund of India b) Foreign Institutional
Investors
c) United
Nations Development Programme d) Reserve
Bank of India e) None of the above
21. If the price
level in an economy increase, the real wages will :
a) increase b) decrease
c) constant d) become
flexible e) None of the above
22. The
difference between the visible exports and visible imports is defined as :
a) Balance of
trade b) Balance of payment c) Coins from trade d) Balance terms of trade
e) None of the
above
23. What is
referred to as ‘Depository Services’?
a) A new scheme
of fixed deposits b) A method of
regulating stock exchanges
c) An agency for
safe keeping of securities d) An
advisory service to investors
e) None of the
above
24. Industrial
exist policy means:
a) Forcing
foreign companies to leave India b) New
market
c) Allowing
industrialists to shift their line products
d) Allowing
business units to close down e) None of
the above
25. “Gresham’s
law” in economics is related to :
a) demand b) supply and demand c) circulation of currency d) consumption
e) None of the
above
26. Consider the
following :
A) Regional
Rural Bank B) Lead Bank Plan C) NABARD
D) State Bank of India
The correct chronological
order of establishment of these organization is :
a) DCAB b) DBAC
c) BCDA d) BADC e) ABCD
27. SIDBI has
been operating under SWS. What is the full form of SWS?
a) Small Welfare
Scheme b) Single Window Scheme c) Small Window Service
d) Single Window
Service e) None of the above
28. ‘Blue
Revolution’ is related to :
a) space
research b) fisheries c) drinking water d) sky
e) rainbow
29. Normally,
two types of factors are responsible for industrial sickness – external and internal.
Which of the following is not an internal factor of industrial sickness?
a) Shortage of
power b) Mismanagement c) Diversion of funds d) Excessive overheads
e)
Overestimation of demand
30. Which of the
following countries has the largest stock of foreign exchange reserves in the
world?
a) USA b) China
c) Japan d) India e) None of these
31. The tax on
import and export is known as :
a) Income
tax b) Trade tax c) Custom duty d) Commercial tax e) None of the above
32. Which of the
following is not an objective of fiscal policy of Indian Government?
a) Full
employment b) Price stability c) Liquidity control d) All of the above
e) None of the
above
33. National
income is estimated by :
a) Indian
Statistical Institute b) Central
Statistical Organization c) NITI Aayog
d) National
Sample Survey Organization e) None of
the above
34. Invisible
exports means export of :
a) prohibited
goods b) unrecorded goods c) services
d) goods through smuggling
e) None of the
above
35. In the law
of demand, other things remain same means :
a) Income of
consumer should not change b) Price of
other goods should not change
c) Taste of
consumer should not change d) All of
the above e) None of the above
36. A firm is in
equilibrium when its:
a) marginal cost
equals the marginal revenue b) total
cost is minimum
c) total revenue
is maximum d) average revenue and
marginal revenue are equal
e) None of the
above
37. Which of the
following taxes is exclusively and totally assigned to the State Government by
the Constitution?
a) Estate
duty b) Sales tax c) Taxes on Railway fares and freights
d) Corporation
tax e) Entertainment tax
38. Who
regulates monetary policy?
a) RBI b) SBI
c) State Government d) Central
Government e) None of the above
39. The first
pure bank of India was :
a) Punjab and
Sind Bank b) Indian Overseas Bank c) State Bank of India
d) Punjab
National Bank e) None of the above
40. CEPA stands
for :
a) Comprehensive
External Partnership Agreement
b) Comprehensive
Economic Partnership Agreement
c) Common
Economic Priority Agreement
d) Commodity
Exchange Priority Accreditation e) None
of the above
EXPLANATIONS
1. a) Narrow Money : A category of
money-supply that includes all physical money like coins and currency along
with demand deposits and other liquid assets held by the central bank. M1 and
M2 are known as narrow money, whereas M3 and M4 are known as broad money. M1 is
very liquid in form, while M4 is least liquid.
2. a) Money Laundering : The process of
creating the appearance that large amounts of money obtained from serious
crimes, such as drug trafficking or terrorist activity, originated from a
legitimate source. Section (3) of Prevention of Money Laundering Act, 2002
(PMLA) defines the offence of money laundering.
3. d) A
short-term obligation backed by the U.S. government with a maturity of less
than one year.
4. a) Unsecured Bill : An unsecured
promissory note is a legal document, or bank note, that is signed along with a
loan. It states that the borrower is promising to repay the loan to the lender,
as specified by the terms detailed in the loan documents and usually repeated
briefly in the promissory note itself. Commercial papers are unsecured
promissory notes.
5. b) The
individuals have to pay interest on the amount depending on the period. For the
beginners, overdraft facility is a credit line given to an individual against
his assets.
6. e) Mumbai is
known as the commercial capital of India.
7. a) CRAR [Capital to Risk (weighted) Assets
Ratio] : Capital Adequacy Ratio (CAR), also known as Capital to Risk
(Weighted) Assets Ratio (CRAR), is the ratio of a bank’s capital to its risk. National
regulators track a bank’s CAR to ensure that it can absorb a reasonable amount
of loss and complies with statutory Capital requirements.
8. b) C – Capital Adequacy
A – Asset Quality
M – Management Quality
E – Earnings
L – Liquidity
S – System and Coutrols
9. a) CARE (Credit Analysis & Research
Limited) : CARE is a rating company that provides rating and grading
services across sectors. CARE has seven offices in India located at Mumbai,
Delhi, Kolkata, Chennai, Hyderabad, Bengaluru and Ahmedabad.
10. c) The
Government of India issued an ordinance (‘Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969’) and nationalized the 14 largest
commercial banks with effect from the midnight of 19 July, 1969. These banks
contained 85% of bank deposits in the country. Six more banks were nationalized
in 1980.
11. a) RTGS (Real Time Gross Settlement) :
RTGS systems are specialist funds transfer systems where transfer of money or
securities takes place from one bank to another on a “real time” and on “gross”
basis. Settlement in “real time” means payment transaction is not subjected to
any waiting period.
12. b)
Commercial papers are normally issued in the multiple of 5 crore. Commercial
paper is a money-market security issued
(sold) by large corporations to obtain funds to meet short-term debt
obligations (for example, payroll), and is backed only by an issuing bank or
corporation’s promise to pay the face amount on the maturity date specified on
the note.
13. d)
Headquarters of World Trade Organization is located in Geneva, Switzerland.
14. a) State
Co-operative Banks : State Co-operative Banks are known as highest or apex body
of co-operative banks.
15. a) ARS
(Automatic Refinance Scheme)
16. a) Deflation
means decline or decrease in the price of goods and services.
17. e) 18. b)
19. d) Index
“Residex” is associated with land prices.
20. b)
Participatory Notes are associated with foreign institutional investors.
Participatory Notes commonly known as P-Notes or PNs are instruments issued by
registered Foreign Institutional Investors (FIIs) to overseas investors, who
wish to invest in the Indian stock markets without registering themselves with
the market regulator, the Securities and Exchange Board of India – SEBI.
21. b) Real
wages are defined as nominal wages (or wage in current money) adjusted for the
price level. Real Wage = Nominal Wage/price level
It is clear from
above, If the price level in an economy increase, the real wages will decrease.
22. a) Balance
of trade = Visible export – Visible import
23. c) Depository
services means an agency for safe keeping of securities. Central Depository
Services Limited (CDSL), is the second Indian central securities depository
based in Mumbai. Its main function is holding the securities either in
certificated or uncertificated (dematerialized) form, to enable book entry
transfer of securities.
24. d)
Industrial exist policy means allowing business units to close down.
25. c) Gresham’s
law is an economic principle that states : “When a government overvalues one
type of money and undervalues another, the undervalued money will leave the
country or disappear from circulation into hoards, while the overvalued money
will flood into circulation.”
26. b)
27. d) Single Window Service : A facility that
allows parties involved in trade and transport to lodge standardized
information and documents with a single entry point to fulfill all import,
export and transit-related regulatory requirements. If information is
electronic then individual data elements should only be submitted once.
28. b) Blue
Revolution is related to fisheries.
29. a) Shortage
of power is not an internal factor.
30. b) China : China has the largest stock of
foreign exchange reserves in the world.
31. c) Customs Duty : Customs duty is a tax
imposed on imports and exports of goods.
32. c) Liquidity
Control : Liquidity control is not the function of fiscal policy. In economics
and political science, fiscal policy is the use of government revenue
collection (mainly taxes) and expenditure (spending) to influence the economy.
33. b) The total
net value of all goods and services produced within a nation over a specified
period of time, representing the sum of wages, profits, rents, interest, and
pension payments to residents of the nation.
34. c) An
invisible export is an export that does not have a physical presence, and
usually comes in the form of services provided. Some examples are tourism,
banking, foreign investments, private transfers, and insurance. So basically,
it’s the trading of services dealing with the exchange of currency from one
nation to another.
35. d)
36. a)
Equilibrium means marginal cost equals the marginal revenue.
37. b)
38. a) RBI
regulates monetary policy to control liquidity in market and price
stabilization. Monetary policy is one of the ways that the U.S. government
attempts to control the economy. If the money supply grows too fast, the rate
of inflation will increase; if the growth of the money supply is slowed too
much, then economic growth may also slow.
39. d) PNB is
known as the first pure bank of India.
40. b) The
Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement
between India and South Korea. The agreement was signed on August 7, 2009.
THANKS BANKING AND YOU AUGUST 2018 best wishes
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