BANKING RELATED GENERAL AWARENESS FOR BANK PO EXAMS.

GENERAL AWARENESS

(With Special Reference to Banking Industry)

1. Under which kind of banking, the purchasing through net banking comes?

a) Offline banking   b) Online banking   c) M-commerce   d) P-commerce   e) None of these

2. What is the full form of MIBOR?

a) Mobile Inter Bank Offered Rate   b) Minimum Instruction Board of Resources

c) Mobile Inter Bank Offered Rate   d) Money International Banking Organization Research

e) None of these

3. Money market is a market for:

a) Short term   b) Long term   c) Medium term   d) It is a one day lending and borrowing market

e) None of these

4. Which among the following is not an economist?

a) Amartya Sen   b) Montek Singh Ahluwalia   c) Salman Khurshid   d) D. V. Subbarao

e) P. Chidambaram

5. Which of the following is not a negotiable instrument?

a) Pay order   b) Cheque   c) Bill of exchange   d) Ware house receipt

e) All are negotiable instruments

6. What is the main function of international monetary fund?

a) Act as private sector lending arm of the World Bank

b) Help to solve Balance of Payment problems of member countries.

c) Finance investment loans to developing countries

d) Arrange international deposits from banks   e) None of these

7. Which of the following is the biggest borrower in India?

a) Government of India   b) State Government   c) Railway   d) PSU   e) None of these

8. Which of the following would result in the fall in asset prices?

a) High liquidity in the economy   b) Low liquidity in the economy

c) RBI allow more banks to pay   d) RBI increase bank rate   e) None of these

9. Which of the following is not a public sector unit/bank?

a) HPCL   b) IDBI   c) HDFC   d) Yes  e) Both (c) and (d)

10. Which of the following organizations/institutions will be set-up core banking infrastructure for rural banks?

a) RBI   b) SIDBI   c) NABARD   d) SEBI   e) None of these

11. Who was the first Governor of RBI?

a) Hilton Young   b) C. D. Deshmukh   c) Paul Samelson   d) O. A. Smith   e) None of these

12. At the time of nationalization who was the Governor of RBI?

a) C. D. Deshmukh   b) O. A. Smith   c) J. B. Taylor   d) K. C Negy   e) None of these

13. In which of the following banks one cannot open personal account?

a) SBI   b) Private sector bank   c) RBI   d) HDFC   e) None of these

14. Paper currencies of our country are issued by RBI under:

a) Section 22 of the RBI Act – 1934   b) Section 24 of the RBI Act – 1934

c) Section 32 of the RBI Act – 1934   d) Section 26 of the RBI Act – 1934   e) None of these

15. Bank rate of RBI is also known as:

a) Interest rate   b) Discount rate   c) Fed rate   d) Bid rate   e) None of these

16. Which of the following is not the any element of quantitative credit control policy of RBI?

a) CRR   b) SLR   c) Selective credit control   d) Open market operation   e) None of these

17. The apex organization of Indian money market is:

a) SBI   b) RBI   c) Government of India   d) SEBI   e) None of these

18. If the cash reserve is lowered by RBI, what will be its effect on credit creation?

a) Decrease   b) Increase   c) Constant   d) Slightly decrease   e) None of these

19. The expansion of money supply of an economy depends upon:

a) The policy of CRR   b) The bank rate policy   c) Open market operation   d) All of these

e) None of these

20. A currency, the exchange value of which performance by its economy, is :

a) Soft currency   b) Hard currency   c) Fiat currency   d) Hot currency   e) None of these

21. Which of the following bank merged with PNB in 1993?

a) New Bank of India   b) Central Bank of India   c) Imperial Bank of India

d) Oriental Bank of Commerce    e) None of these

22. How many languages are used on a ten rupee note?

a) 10   b) 16   c) 15   d) 20   e) None of these

23. What is scheduled bank?

a) A bank having 10 crore deposits   b) A bank having 100 crore deposits

c) A bank having 500 crore deposits

d) A bank include in the Second Schedule of RBI ACT, 1934   e) None of these

24. The place where bankers meet and settle their mutual claims and accounts is:

a) Clearing house   b) Collection centre   c) Dumping house   d) Mutual claim house

e) None of these

25. Regional Rural Banks are working in all states of the country except:

a) Sikkim and Manipur  b) Manipur and Nagaland   c) Sikkim and Goa   d) Jammu and Kashmir

e) None of these

26. The national housing bank is a subsidiary of :

a) RBI   b) NABARD   c) SBI   d) IFCI   e) None of these

27. Monetary policy refers to the policy of :

a) Moneylenders   b) Government   c) Commercial banks   d) RBI   e) None of these

28. The rate at which RBI takes loan from commercial banks is called:

a) Repo rate   b) Bank rate   c) Reverse Repo Rate  d) CRR   e) None of these

29. Cash Reserve Ratio (CRR) and statutory liquidity ratio are terms mostly close related to which industry?

a) Finance Industry   b) Close economy   c) Industrial sector   d) Banking industry

e) None of thee

30. What is the maximum period for which domestic term deposits are normally accepted by banks?

a) 15 Years   b) 10 Years   c) 5 Years   d) 20 Years   e) None of these

31. Which of the following is not a negotiable instrument?

a) Bill of exchange   b) Cheques   c) Promissory notes   d) Fixed deposit receipt

e) None of these

32. What does BPLR stands for?

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

33. Bank report the information about the credit availed by their clients to credit reference agencies on a :

a) Daily basis   b) Monthly basis   c) Yearly or annually basis   d) 6 month basis

e) None of these

34. Which of the following is not directly associated with the functioning of RBI?

a) Monetary policy   b) Money market   c) Sensex   d) Credit policy   e) None of these

35. What does the letter ‘F’ denotes in FDI?

a) Foreign   b) Fiscal   c) Forum   d) Favourable   e) None of these

36. Which of the following is not considered as money market instrument?

a) Commercial papers   b) Certificate of deposits   c) Call money   d) Share and bonds

e) None of these

37. Teaser loans are related to which of the following types of loans?

a) Car loan   b) Agriculture loan   c) Industrial loan   d) Home loan   e) None of these

38. Capital market regulator is :

a) SIDBI   b) SEBI   c) RBI   d) NHB   e) None of these

39. what does the term NSDL stand for?

a) National Securities Depository Limited   b) National Scheme for Depository Loan

c) New Scheme for Loan Deposits   d) National Social for Division Lending   e) None of these

40. At which of the following levels central co-operative banks in India are established?

a) State level   b) District level   c) Central level   d) Local or town level   e) None of these

ANSWERS

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

14.(a)   15.(a)   16.(c)   17.(b)   18.(b)   19.(d)  20.(b)   21.(a)   22.(c)   23.(d)  24.(a)   25.(c)   26.(a)

27.(d)  28.(c)   29.(d)  30.(b)   31.(d)  32.(a)   33.(b)   34.(c)   35.(a)   36.(d)  37.(d)  38.(b)   39.(a)

40.(b)

EXPLANATION

1. b) Online banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society.

2. a) MIBOR-Mobile Inter Bank Offered Rate. MIBOR, the interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market.

3. a) Money Market – A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year.

4. c)

5. d) 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.

6. b) The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

7. a)     8. b)     9. e)     10. c)

11. d) The central bank of India, which was established on April 1, 1935, under the Reserve Bank of India Act. The RBI uses monetary policy to create financial stability in India and is charged with regulating the country’s currency and credit systems.

12. Nationalization was happened on 1^st January, 1949.

13. c)

14. a) Paper currency – Currency issued by a government or central bank and consisting of printed paper that can circulate as a substitute for specie.

15. a) 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.

16. c) Selective methods of credit control are a comparatively recent development in monetary management by the central bank.

17. b)   18. b)   19. d)

20. b) A currency, usually from a highly industrialized country, that is widely accepted around the world as a form of payment for goods and services. A hard currency is expected to remain relatively stable through a short period of time, and to be highly liquid in the forex market.

21. a)   22. c)

23. d) Scheduled Commercial Banks are those banks which were included in the second schedule of RBI ACT, 1934.

24. a) An agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies regulating delivery and reporting trading data.

25. c)   26. a)

27. d) Monetary policy is also known as credit policy. 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.

28. c)   29. d)

30. b) Minimum = 7 days Maximum = 10 years

31. d) 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.

32. a) The Benchmark Prime Lending Rate (BPLR), is the reference interest rate based on which a bank lends to its credit worthy borrowers. Normally, loans are given out a little more or a little less that this reference interest rate.

33. b)

34. c) An abbreviation of the Bombay Exchange Sensitive Index (Sensex) – the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.

35. a) FDI-Foreign Direct Investment. A foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country.

36. d) Bonds and stocks are both securities, but the major difference between the two is that (capital) shtockholders have an equity stake in the company (i.e., they are investors), whereas bondholders have a creditor stake in the company (i.e., they are lenders).

37. d) An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate, which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur.

38. b)   39. a)   40. b)