BANKING RELATED G.A. --IBPS CLERKS 2016 MAIN --IMPORTANT

GENERAL AWARENESS

(With Special Reference to Banking Industry)

1. Which of the following is also known as policy rate?

a) Bank Rate   b) Repo Rate   c) Reverse Repo Rate   d) All of the above   e) None of the above

2. Which of the following is a foreign bank?

a) HDFC Bank   b) ICICI Bank   c) Yes Bank   d) Standard Chartered Bank

e) Syndicate Bank

3. Whenever a bank returns a cheque unpaid, them what that cheque is called?

a) Honour cheque   b) Returned cheque   c) Dishonour cheque   d) Application cheque

e) None of these

4. Which is the third largest public sector bank of India?

a) Punjab National Bank (PNB)   b) Bank of Baroda   c) State Bank of India

d) Allahabad Bank   e) None of these

5. What does ASBA stand for ?

a) Application Support by Blocking Amount   b) Application Specific for Banking Accounts

c) Saving Accounts Banking Application   d) Application Supported by Blocked Amount

e) None of these

6. What will happen if there is an increase in Cash Reserve Ratio (CRR)?

a) There will be a decrease in lendable resources

b) There will be an increase in lendable resources   c) Liquidity will be increased in market

d) Banks will give more loans to customers   e) None of these

7. In which year, RBI announced banking Ombudsman scheme?

a) 1992   b) 1885   c) 1995   d) 1990   e) None of these

8. What is the percentage of Foreign Direct Investment (FDI) in private sector bank?

a) 51%    b) 74%   c) 49%   d) 50%   e) None of these

9. How many directors are associated with RBI?

a) 15   b) 20   c) 10   d) 4   e) None of these

10. Which policy is adopted by RBI during inflation?

a) Near money policy   b) Close money policy   c) Hard money policy   d) Dear money policy

e) None of these

11. Which negotiable instrument can be crossed to bank?

a) Cheque   b) Bill of Exchange   c) Certificate of deposits    d) Commercial papers

e) None of these

12. Money laundering refers to which of the following?

a) Conversion of assets into cash   b) Conversion of money which is illegally obtained

c) Conversion of cash into gold   d) Conversion of gold into cash

e) Conversion of shares into cash

13. The Reserve Bank of India issues:

a) All the currency notes   b) All the currency notes except the one rupee note

c) All the currency notes except the hundred rupee note   d) Only notes of 10 and above

e) None of these

14. RBI does not transact the business of which of the following State Government?

a) Nagaland   b) Delhi   c) Jammu and Kashmir   d) Sikkim   e) None of these

15. The first Indian bank to open branch outside India in London in 1946:

a) Bank of Baroda   b) Central Bank of India   c) State Bank of India   d) Bank of India

e) None of these

16. What is HOT money?

a) NRI deposits   b) 1000 above notes   c) Industrial money   d) Money easily available

e) None of these

17. Which of the following is the objective for amendment to the Indian Postal Act, 1898?

a) Courier companies shall be monitored by the Postal Department

b) Courier companies will do every post   c) It will enlarge the role of courier companies

d) All documents weighing less than 300 gm will have to go through post and cannot be couriered

e) None of these

18. Euro bond is an instrument:

a) issued in the European market   b) issued on the euro currency

c) issued in a currency other than the currency of the country   d) All of these

e) None of these

19. National income estimates in India are prepared by :

a) Finance Ministry   b) Central Statistical Organization   c) Statistical Department

d) National Development Council   e) None of these

20. The RBI has prescribed that all SCBs should maintain their SLR in :

a) Dated securities notified by RBI   b) T-Bills of Government of India

c) State Development Loans   d) All of the above   e) None of the above

21. The first private bank in India to receive an in-principle approval from the RBI?

a) ICICI   b) HDFC   c) Axis Bank   d) IDBI   e) None of these

22. The Narasimham Committee for financial sector reforms suggested reduction in :

i) SLR and CLR   ii) SLR, CRR and priority sector lending  iii) SLR and financing to capital goods

Which of the following options is correct?

a) ii) and iii)   b) i) and iii)   c) Only iii)   d) only i)   e) None of these

23. Which of the following is a stable cheque?

a) A cheque issued without drawer’s signature   b) A cheque issued with drawer’s signature

c) A cheque which has completed three months from its date of issue

d) A six months post dated cheque   e) Any one of the above

24. The “No Frill accounts” facility provided by banks is aimed at which of the following categories of people?

a) Corporate world   b) Senior citizens   c) Current account holder   d) Poor people

e) Government people

25. Which of the following is treated as artificial currency?

a) ADR   b) GDR   c) SDR   d) Equity shares   e) Both ADR and SDR

26. EFT stands for :

a) Effective Fund Transfer   b) Efficient Funds Transfer   c) Easy Fund Transfer

d) Electronic Fund Transfer   e) None of these

27. What are White Label Automated Teller Machines?

a) ATMs to be set-up in unbanked sectors   b) ATM for credit accounts

c) ATM owned and operated by non banking entities

d) Biometric ATMs for uneducated people   e) None of these

28. The headquarters of World Bank is in:

a) Washington DC   b) London   c) Paris   d) Geneva   e) None of these

29. As we all know that banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called :

a) SLR   b) Bank Deposit   c) Reverse Repo   d) CRR   e) None of these

30. In India, the National Income is measured on the basis of :

a) Flow of goods only   b) Number of employed youth only

c) Earning of people working in PSUs and government jobs

d) Volume of tax collected per annum   e) None of these

31. Which of the following economic concept is categorized on the basis of current account or capital account or both?

a) Balance of Payment   b) Value of the Food grain Stock of a country

c) Gross National Product   d) Gross National Income   e) None of these

32. Which of the following act is/was introduced for the purpose of sustainable growth?

a) Narcotics and Psychotropic Substance Act  b) Foreign Exchange Management Act

c) Banking Regulation Act   d) Prevention of Money Laundering Act   e) None of these

33. Sometimes we see a reference of “Least Developed Country” in the economic journals / papers etc. Which among the following is one of the parameters on the basis of which a country in economic parlance is labeled “Least Developed”?

a) Those countries having instability in agriculture/industrial production.

b) Huge losses due to natural disasters resulting in displacement of people in majority

c) No change in government in last ten years as general elections did not take place

d) Low per capita income   e) None of these

34. IAEA is an organization which functions in the area of :

a) Prevention of money laundering   b) Control of foreign direct investment   c) Nuclear energy

d) Terrorist control   e) None of these

35. Which of the following organizations is established mainly to promote micro, small and medium industrial sector in India?

a) NABARD   b) SIDBI   c) IDBI   d) EXIM BANK   e) None of these

36. What does the term “AAY” denote which is the short form of social scheme launched by the Government of India?

a) Antodaya Awas Yojana   b) Asian Awas Yojana   c) Antodaya Anna Yojana

d) Area Antodaya Yojana   e) None of these

37. Which of the following acts help a bank in its day to day activities?

a) Competition Act   b) Negotiable Instrument Act   c) Hindus Marriage Act

d) Hindus Succession Act  e) None of these

38. Which of the following is not asset of a bank?

a) Notes and Small Coins   b) Short-term Loans   c) Staff Advances

d) Overdue Recurring Deposits   e) None of these

39. The base rate is set by which of the following organizations/institutions?

a) Individual Bank   b) Government of India   c) Reserve Bank of India   d) State Bank of India

e) None of these

40. The banking company has restriction to sanction loan to :

a) Staff working in the bank   b) RBI staff   c) Director of the bank   d) All of the above

e) None of the above

EXPLANATION

1. a) Bank rate is, also known as policy rate, the interest rate at which a nation’s central bank lends money to domestic banks. Often these loans are very short in duration. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity.

2. d)

3. c) Dishonour cheque-A cheque which the bank will not pay because there is not enough money in the account to pay it.

4. a)     Ist – State Bank of India

            IInd – Bank of Baroda

5. d) ASBA (Applications Supported by Blocked Amount) is a process developed by the India’s Stock Market Regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until shares are allotted to them.

6. a) Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves with the central bank.

7. c) The Banking Ombudsman Scheme enables and expeditious and inexpensive forum to bank customers for resolution of  complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

8. b) Foreign Direct Investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. The Organization of Economic Cooperation and Development (OECD) defines control as owning 10% or more of the business.

9. a)

10. d) A policy in which a government reduces the amount of money being spent in an economy by raising interest rates, making it more expensive to borrow money.

11. b) A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.

12. b) Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets.

13. b)   14. c)   15. d)

16. a) NRI deposits come under hot money. Money that flows regularly between financial markets as investors attempt to ensure they get the highest short-term interest rates possible. Hot money will flow from low interest rate yielding countries into higher interest rates countries by investors looking to make the highest return. These financial transfers could affect the exchange rate if the sum is high enough and can therefore impact the balance of payments.

17. d)

18. c) A bond issued in a currency other than the currency of the country or market in which it is issued. Eurobonds are attractive financing tools as they give issuers the flexibility to choose the country in which to offer their bond according to the country’s regulatory constraints.

19. b) National income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics.

20. d) Statutory Liquidity Ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, cash or government approved securities before providing credit to the customers.

21. b)

22. d) Only in SLR and CRR. SLR-Statutory liquidity ratio is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, cash or government approved securities before providing credit to the customers.

CRR-Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves with the central bank.

23. c) A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.

24. d) No frill accounts are for poor people. Banks were advised in November 2005 to make available a basic banking ‘No-frills’ account either with ‘nil’ or very low minimum balance as well as charges that would make such accounts accessible to vast sections of population.

25. c) Special Drawing Rights is treated as artificial currency. A currency that does not circulate and is used for accounting purposes only.

26. d) Electronic Fund Transfer (EFT) is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

27. c) White Label Automated Teller Machines-When ATMs are owned and operated by non-bank entities but they are not doing ‘outsourcing-contract’ from a particular bank.

28. a)

29. d) CRR-Cash Reserve Ratio

It is only in form of cash. It is not refundable. Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves with the central bank.

30. c) National income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics.

31. a) Current Account-An account with a bank or building society from which money may be withdrawn without notice, typically an active account catering for frequent deposits and withdrawals by cheque.

Capital account-The capital account is the net result of public and private international investments flowing in and out of a country. May also refer to an account showing the net worth of a business at a specific point in time.

32. b) FEMA-An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

33. c)

34. c) IAEA-International Atomic Energy Agency. Its headquarters is in Vienna, Australia. The International Atomic Energy Agency (IAEA) is an international organization that seeks to promote the peaceful use of nuclear energy, and to inhibit its use for any military purpose, including nuclear weapons. The IAEA was established as an autonomous organization on 29^th July, 1957.

35. b)

36. c) AAY-Antodaya Anna Yojana. Antyodaya Anna Yojana (AAY) is an Indian government sponsored scheme for ten million of the poorest families. It was launched by NDA government in December 2000. It is on the lookout for the ‘poorest of the poor’ by providing them 35 kilograms of rice and wheat at  3 &  2 per kg. respectively.

37. b)

38. d)

39. a)

40. c)