Educational sms

Banking Questions Collection Updated Version
1. The permanent account number (PAN), which
is an alphanumeric number allotted by the income
tax department to taxpayers, consists of how
many digits?
1) Seven digits
2) Eight digits
3) Nine digits
4) Ten digits
5) Eleven digits Ans-4
2.Which of the following regulators regulates
credit rating agencies in India?
1) Reserve Bank of India (RBI)
2) Securities and Exchange Board of India (SEBI)
3) Insurance Regulatory and Development
Authority(IRDA)
4) Forward market commission(FMC)
5) None of these
Ans-2
3.Which of the following instruments is NOT a
negotiable instrument?
1) Banknote
2) Promissory note
3) Bill of exchange
4) Cheque
5) Demand draft Ans-1
4. Star series banknotes issued by the RBI refer
to which of the following?
1) Banknotes issued to track black money
2) Banknotes used to replace those with defective
printing
3) Banknotes issued for a short period
4) Plastic notes
5) None of these Ans-2
5. The Reserve Bank of India (RBI) has permitted
some non-bank entities to set up white-label
ATMs in India. Which of the following is/are
among them?
1) Tata Communications Payment Solutions
2) Vakrangee
3) Muthoot Finance
4) Prizm Payment Services
5) All the above
Ans-5
6.Which of the following banks has the highest
number of branches outside India?
1) HDFC Bank
2) ICICI Bank
3) Bank of Baroda
4) Indian Overseas Bank
5) Punjab National Bank Ans-3
7. Expand the term MFI as used in banking/
financial parlance.
1) Market Finance Institution
2) Medium Finance Institution
3) Micro Finance Institution
4) Mega Finance Institution
5) None of these
Ans-3
8.Which of the following cannot be categorised as
a debt instrument?
1) Loan
2) Certificate of deposit
3) Commercial paper
4) Bond
5) Stock
Ans-5
9. Banks in India normally follow a practice of
providing additional interest rate on retail
domestic term deposits of _________.
1) Handicaps
2) Senior citizens
3) Rural people
4) Married women
5) None of these Ans-2
10. In the event of a bank failure, Deposit
Insurance and Credit Guarantee Corporation
(DICGC) protects bank deposits that are payable
in India. Which of the following is not covered by
DICGC?
1) Deposits of Central/State Govts
2) Current
3) Recurring
4) Fixed
5) Savings Ans-1
11. When the RBI opts to reduce liquidity in the
banking system, it increases which of the
following?
1) CRR
2) SLR
3) Repo rate
4) Reverse repo rate
5) Any of the above Ans-5
12.What is the term used for the debt instrument,
secured by the collateral of an immovable
property, in which the borrower is obliged to pay
back the debt on terms agreed upon?
1) Lien
2) Assignment
3) Mortgage
4) Hypothecation
5) Pledge
Ans-3
13. A Banking Ombudsman can reject a complaint
at any stage on which of the following grounds?
1) There is no loss or damage or inconvenience
caused to the complainant in the opinion of the
Banking Ombudsman.
2) The compensation sought from the Banking
Ombudsman is beyond `10 lakh. 3) The complaint
is not pursued by the complainant with
reasonable diligence. 4) Any of the above
5) Only 1) and 3) Ans-4
14. What does the letter ‘A’ represent in the
abbreviation CRAR?
1) Allocation
2) Advance
3) Adequacy
4) Assets
5) None of these Ans-4
15. Revolving credit is made available by the
issuer in the case of which of the following
instruments?
1) Debit card
2) Credit card
3) Cashless claim card
4) ATM card
5) None of these Ans-2
16. A debit card holder cannot perform which of
the following functions?
1) Make Point of Sale (PoS) purchase
2) Recharge pre-paid mobile phones
3) Pay life insurance premium
4) Make donation
5) None of the above
Ans-5
17.Which of the following is the best option to
park money for a long period of time to earn a
high rate of interest?
1) Savings account
2) Current account
3) Fixed Deposit account
4) Recurring account
5) None of these
Ans-3
18. The Reserve Bank of India (RBI) granted
QCCP status to Clearing Corporation of India Ltd
(CCIL) recently. QCCP stands for
1) Queried Central Counterparty
2) Qualifying Central Counterparty
3) Qualitative Central Counterparty
4) Quantitative Central Counterparty
5) None of these
Ans-2
19. The process through which an investor’s
physical share certificate gets converted to
electronic format which is maintained in an
account with the Depository Participant, is termed
as
1) Materialisation
2) Dematerialisation
3) Conversion
4) Prioritisation
5) None of these Ans-2
20.Which of the following abbreviations and their
expanded forms is NOT matched correctly?
1) BIFR: Board for Industrial and Financial
Reconstruction
2) CBS: Central Banking Solution
3) FPO: Follow-on Public Offer
4) NCD: Non-Convertible Debentures
5) None of these
Ans-2
21. Which of the following card product launched
by the banks is working on the principle of Buy
Now Pay Later?
1. ATM card
2. Debit card
3. Charge Card
4. Credit card Ans-4
22. Which of the following organisation provides
credit history of the borrowers?
1. CIBIL
2. SEBI
3. RBI
4. IBA Ans-1
23. What is the Full form of NSE the term we see
very frequently in newspaper?
1. New service exchange
2. New stock evauation
3. National stock exchange
4. National service emporium Ans-3
24. The term Deficit Financing means the
government borrows money from the....?
1. IMF
2. Local bodies
3. RBI
4. large corporates Ans-3
25. Excise duty is the tax levied on which of the
following?
1. Production of goods
2. purchase of goods
3. export of goods
4. sale of goods
Ans-1
26. Upper limit prescribed for RTGS transactions
is ?
1. Rs 1 lakh
2. Rs 2 lkah
3. Rs 5 lakh
4. No upper limit is prescribed Ans-4
27. When a bank returns a cheque unpaid, it is
called...?
1. payment of cheque
2. dishonour of cheque
3. cancelling of cheque
4. taking of cheque Ans-2
28. Which of the following is not a negotiable
instrument?
1. Cheque
2. Fixed deposit reciept
3. promissory note
4. Bill of exchange Ans-2
29. In economic terms. the total market value of
all final goods and services produced in a country
in a given year is known as .....?
1. GNI
2. GDP
3. Inflation
4. PPP
Ans-2
30. Special Drawing Rights are the rights of
countries provided by....?
1. World Bank
2. IMF
3. ADB
4. Federal reserves Ans-2
31. Pre-shipment finance is provided by the
banks only to…..?
1. Credit card holders
2. Students aspiring for further studies
3. Brokers in equity market
4. Exporters Ans-4
32. In banking business, when the borrowers avail
a Term Loan, initially they are given a repayment
holiday and this referred as……….?
1. Subsidy
2. Interest Waiver
3. Re-phasing
4. Moratorium Ans-4
33. When a person opens an account in a bank,
the bank is a ………. Towards the person
1. Creditor
2. Debtor
3. Agent
4. Borrower Ans-2
34. Concept of Tobin Tax is associated with
which field?
1. Foreign Exchange Transactions
2. Share Trading
3. Commodity Trading
4. Bullion Trading
Ans-1
35. Which act pertains to effectively dealing with
the problem of non- performing assets (NPAs) in
Indian Banking ?
1. RBI ACT
2. Banking and Regulation Act
3. SARFAESI Act
4. Banking Ombudsman Ans-3
36. Which agency/ institution is the regulatory
authority for home loans in India?
1. Housing Development Finance Corporation
(HDFC)
2. National Housing Bank (NHB)
3. National Housing Board
4. Housing Finance Corporation ltd.(HFCL)
Ans-2
37. Which of the following countries has ranked
as top gold producer in World?
1. Germany
2. South Africa
3. China
4. India
Ans-3
38. Commercial paper can be issued……..?
1. By all corporate
2. By all corporate with net worth of at least Rs
10 crore
3. By all corporate with net worth of at least Rs 5
crore
4. Can be issued only by Banks Ans-3
39. Sub-prime lending refers to……..?
1. Lending to the customer who are most value
for the banks
2. Lending to the customer who vist bank for the
very first time
3. Lending to the people with less than standard
credit status
4. None of these
Ans-3
40. This committee is associated with finance to
small scale industries
1. C.E Kamath
2. Malegam
3. G.S Patel
4. Chatelier
Ans-2
41. CRR funds are kept by the Banks in.........?
1. Cash in hands at branches
2. Balance with other banks
3. Balance in a special accounts with RBI
4. Funds in the currency chest Ans-3
42. India's first indigenous payment gateway is
..........?
1. India Expenditure
2. India Payment
3. India Challan
4. India Pay Ans-4
43. The interest on recurring deposit is paid on
the basis of ?
1. Simple interest calculated monthly basis
2. Simple interest on monthly product basis
3. Quarterly compounding
4. Interest calculated on daily product basis
Ans-3
44. Which of the following is not an imperfect
note?
1. Wahsed note
2. Bleached note
3. Multilated note
4. Oiled note Ans-3
45. When bank accept a fixed sum of money from
an individual for a definite term and pay on
maturity with interest, the deposit is known
as.....?
1. Term deposit
2. Demand Deposit
3. Bond
4. Mortgage
Ans-1
46. Issuing credit cards is a component of?
1. Corporate Banking
2. Rural banking
3. Retail Banking
4. Micro finace Ans-3
47. Certificate of deposits have a minimum value
of......?
1. Rs 1 lakh
2. Rs 10 Lakh
3. Rs 25 lakh
4. Rs 1 crore Ans-1
48. CAPART is associated with which of the
following?
1. Energy sector
2. Rural Developemnt
3. Infrastructure
4. Foreign trade Ans- 2
49. A loan bearing low rate of interest is known
as ........?
1. Hard loan
2. Soft loan
3. Capital Loan
4. Real Loan Ans-2
50.When the loan is guaranteed for purchase of
white goods it is called......?
1. White goods loan
2. Consumer durable loan
3. Business loan
4. Consumption loan Ans-2
51. Tier-I capital of Banks doesn't not
includes......?
1. Paid up capital
2. Statutory reserves
3. Revaluation reserves
4. Investment fluctuation reserves
Ans-3
52. The Full form of MIBOR is......?
1. Mumbai Inter bank offer rate
2. Melboure inter bank offer rate
3. Madrid inter bank offer rate
4. None of these Ans-1
53. Many times we read in newspaper a term
CBS. What does B denotes in the term CBS?
1. Business
2. Banking
3. Base
4. Bond Ans- 2
54. The RBI has helped to finance India's Foreign
trade through.......?
1. NABARD
2. EXIM bank
3. SBI
4. IDBI
Ans-2
55. Which of the following is generally referred to
as Broader measure of money supply?
1. M1
2. M2
3. M3
4. M4 Ans-3
56. What do you understand by Para Banking
services?
1. Eligible financial services rendered by bank
2. utility services provided by bank
3. services provided through business
correspondent
4. Services proved to armed force personnel
Ans-1
57. To get the credit History of a company, which
among the following should be approached? 1.
ECGC
2. CIBIL
3. SEBI
4. RBI Ans-2
58.If a person wants Fixed deposit in a bank, will
KYC norm applicable on the person?
1. Yes
2. No
3. Partially
4. Depend on discretion of bank Ans-1
(59) Which of the following is called Paper Gold?
1. Euro
2. Dollar
3. Yuan
4. SDR Ans-4
60. Open market operations RBI refers to.........?
1. Buying and selling of securites
2. Trading in shares
3. Auctioning of treasuring bills
4. Selling& purchasing of goods Ans-1
61. Bank Rate is..........?
1. Rate at which commercial banks borrow long
term funds from Central Bank.
2. Rate at which commercial banks borrow Short
term funds from Central Bank.
3. None of these
4. Both 1 and 3
Ans-1
62. CRISIL is a...........?
1. Mutual Fund
2. Credit rating agency
3. Investment bank
4. share depository Ans-2
63. Which of the following releases " World
Economic Outlook" Report?
1. Asian development Bank
2. World Bank
3. International Monetary Fund 4.World Trade
organisation Ans-3
64. Which day is celebrated as the Banks
Nationalization Day?
1. 19 july
2. 1 august
3. 1 june
4. 1 september Ans-1
65. National income indicates?
1. The number of families below poverty line
2. Goods and services in Economy
3. Growth of Economy
4. 2 and 3
Ans-4
66. The govt. of India replaced the FERA
by..........?
1. FEMA
2. FRBMA
3. Monopolies Act
4. FRTP Ans-1
67. Functions of NBFC includes........?
1. Equipment leasing
2. Term Deposits
3. Housing Finance & investment in Financial
securities
4. 1&3
Ans-4
68. Gilt- Edged market means...........?
1. Bull market
2. Gun market
3. Market of government securities
4. market of ure metal An-3
69. What is used to manage cash flows in
different currencies?
1. Credit crunch
2. Arbitrage
3. Mirco credit
4. Currency swap Ans-4
70. Stagflation refers to...........?
1. High inflation in periods of full employment
2. High deflation in periods of high unemployment
3. deflation in periods of stagnant employment
4. high inflation in periods of high unemployment
Ans-4
71. What is the share of sponsor bank in the
capital of RRB?
1. 35%
2. 49%
3. 51%
4. 71% Ans- 1
72. Open market operation is a part of........?
1. Income policy
2. Fiscal Policy
3. Credit Policy
4. Labour Policy Ans- 3
73. Body which regulates micro-finance is ......?
1. RBI
2. IBA
3. NABARD
4. SIDBI Ans- 3
74. The first deposit in the newly opened account
can be.........?
1. Cash only
2. Bank draft
3. Cheque
4. Banker's cheque Ans-1
75. Permanent account number is must
for..........?
1. Nostro accounts
2. numbered bank accounts
3. Joint accounts
4. Demat accounts Ans- 4
76. If a credit card is lost, the card member
should call up the customer helpline number and
he says his request for deactivating the card.
This is card.....?
1. Hotlisting
2. Crosslisting
3. Shortlisting
4. Blocklisting Ans- 1
77. Payee of the cheque refers to....?
1. The bank who pays the cheque
2. The customer who ussues the cheque
3. In whose favor the cheque is issued
4. Who cancels the cheque
Ans-3
78. The RBI's methods of credit control maybe
broadly divided into....?
1. Qualitative and Quantitative
2. Open and close
3. Monetary and fiscal
4. Rural and urban Ans- 1
79. The first public sector bank in India which
obtained license for Internet Banking from RBI
is....?
1. Punjab National bank
2. Oriental bank of Commerce
3. Corporation Bank
4. State Bank of India
Ans- 1
80.The Export- Import Bank of India was set up
in........? 1. April 1982
2. January 1982
3. April 1970
4. July 1969 Ans- 2
81. Finance Ministry has asked the Reserve Bank
ot India to allow common ATM's that will be
owned and managed by non-banking entities
hoping to cut transaction costs for banks. Such
ATM's are known as—
1. Black Label ATM's
2. off site ATM's
3 on site ATM's or red ATM's
4. third party ATM's
5 white label ATM's Ans-5
82. The term 'Smart Money' refers to
1 Foreign CURRENCY
2 Internet Banking
3 US Dollars
4 Travelers'cheques
5 Credit Cards Ans-5
83. What is the maximum deposit amount insured
by DICGC ?
1 2,00,000 per depositor per bank
2 2,00,000 per depositor across all banks
3 1,00,000 per depositor per bank
4 1,00,000 per depositor across all banks
5 None of these Ans-4
84. With reference to a cheque which ol the
following is the 'drawee bank' ?
1 The bank that collects the cheque
2 The payee's bank
3 The endorsee's bank
4 The endorser's bank
(5) The bank upon which the cheque is drawn
Ans-5
85. Which of the following is the example of near
money?
1. Small coins of 50 paisa
2. Fait money
3. Bank draft
4. Treasury Bills
5. None of these Ans-4
86. Treasury Bills are sold by-?
1. SEBI
2. State Government
3. RBI
4. Commercial Banks
5. None of these Ans-3
87. An instrument of qualitative credit control in
India is..........?
1. Open market operation
2. Repo rate policy
3. Credit rationing
4. Bank rate policy
5. None of these Ans-3
88. What is the base year for WPI(Whole Sale
Price Index) ?
1. 2004-05
2. 2003-04
3. 2002-03
4. 2005-06
5. None of these Ans-1
89. Open Market operation is a part of .........?
1. Income Policy
2. Fiscal Policy
3. Credit Policy
4. Labour Policy
5. None of These
Ans-3
90. RBI increases Repo Rate to control which
economic situation of economy?
1. Deflation
2. Inflation
3. Recession
4. Stagflation
5. None of these Ans- 2
91. Largest shareholders (in % shareholding) of a
nationalized bank is .........?
1. RBI
2. NABARD
3. LIC
4. Government of India Ans- 4
92. Banks in our country normally publicizes that
additional interest rate is allowed on retail
domestic term deposits of .......?
1. Minors
2. Married women
3. Senior citizens
4. Government employees Ans-3
93. Which of the following is not considered a
money market instrument?
1. Treasury bills
2. Repurchase agreement
3. Commercial Paper
4. Share and Bonds
Ans-4
94. NEFT means....?
1. National Electronic Funds Transfer system
2. Negotiated Efficient Fund Transfer system
3. National Efficient Fund trasfer solution
4. None of these
Ans-1
95. Upper limit prescribe for RTGS transaction is
......?
1. Rs 1 lakh
2. Rs 2 lakh
3. No upper limit
4. Rs 50 lakh ans-3
96. Distribution of insurance products and
insurance policies by banks as corporate agents
is known as .....?
1. General insurance
2. Non-life Insurance
3. Bancassurance
4. Deposit insurance Ans-3
97. When a bank returns a cheque unpaid it is
called.......?
1. payment of the cheque
2. drawing of the cheque
3. cancelling of the cheque
4. dishonour of the cheque Ans-4
98. Fixed deposits and recurring deposits
are..........?
1. repayable after an agreed period
2. repayable on demand
3. not repayable
4. repayable after death of depositors Ans-1
99. Which of the following is the correct
statement/
1. SBI is the sole authority to issue and manage
currency in India
2. A nationalised bank is the sole authority to
issue and manage currency in India
3. RBI is the sole authority to issue and manage
currency in India
4. None of these
Ans- 4
100. Interest payable on savings bank account is
.......?
1. not regulated by RBI
2. regulated by State Government
3. regulated by Central government
4. regulated by RBI
Ans-4
101. Bank Branches which can undertake foreign
exchange business directly are known as ......
foreign exchange.
1. Authorized dealers
2. Foreign dealers
3. Overseas branches
4. Approved dealers Ans- 1
102. Insurance cover for bank deposits in our
country is provided by.........?
1. SBI
2. Government of India
3. LIC
4. DICGC
Ans- 4
103. Financial Literacy doesnot include which of
the following?
1. How to invest the funds
2. How to use the limited funds carefully
3. How to minimise the risk
4. None of these Ans-4
104. Loans of very small amounts given to low
income groups is called..........?
1. Cash credit
2. Microcredit
3. Simple overdraft
4. No frills loans Ans- 2
105. Expand the term ALM are used in Banking
sector ?
1. Asset Liability Management
2. Asset Liability Maturity
3. Asset Liability Mismatch
4. Asset Liability Manpower Ans-1
106.Which of the following is not classified as a
commercial bank?
1. Public sector bank
2. Foreign banks
3. Private sector bank
4. Urban cooperative bank Ans- 4
107. Monetary Policy as an arm of the economic
policy is administered by........?
1. Government of India
2. RBI
3. SBI
4. None of these Ans- 2
108. The Banking Ombudsman?
1. is in charge of bank loans for buses
2. fixes the rates of interest for loans
3. resolves complaints of cutomers
4. issues licenses for new bank branches Ans- 3
109. Which of the following is not a primary
function of a Bank? 1. Granting Loans
2. Collecting Cheques/Drafts of customers
3. Facilitating imports of goods
4. Issuing Bank Drafts Ans- 3
110. Money laundering means........?
1. Hiding of income source mainly to avoid
Income Tax 2. Money acquired through criminal
source
3. Money acquired from undisclosed sources and
deposited in foreign banks
4. Process of conversion of money obtained
illegally to appear to have originated from
legitimate sources
Ans-4
111. The Holidays for the Banks are declared as
per........? A RBI act
B Banking Regulation Act
C Negotiable Instruments Act
D Companies Act
Ans- C
112. Interest below which a bank is not expected
to lend to customers is known as ...? A Deposit
Rate
B Base Rate
C Prime Lending Rate D bank Rate
Ans- B
113. What does the letter"C" denotes in the term
CBS as used in Banking operations? A Central
B Core
C Commercial D Capital Ans- B
114. The Term FTZ stand for......?
A Free trade Zone
B Food trade Zone
C Foriegn Trade one
D Fiscal Trade Zone
Ans- A
115. Excise duty is the tax levied on? A
Production of goods
B Import of goods
C Profits on sale of oods D None of these
Ans- A
116. A money deposited at a bank that cannot be
withdrawn for a period fixed period of time is
known as a ......?
A Term Deposit
B Checking Account
C Savings bank deposits D Current Deposit Ans-
A
117. The term Smart Money refers to? A Credit
cards
B Us Dollars
C Internet Banking D Foreign currency Ans- A
118. What does the letter P denote in the term
PAN as used in Financial transactions? A Primary
B Partial
C Provisional D Permanent Ans- D
119. The economy in which there is a mixture of
public and private sector both is called.....? A
Closed Economy
B Mixed Economy C Open Economy D Public
Economy Ans- B
120. Which of the following is a retail banking
product?
A Home loans
B Working capital finance
C Corporate term loans
D Export Credit
Ans- A
121. A segment of the financial market in which
financial instruments with high liquidity and very
short maturities are traded is known as---?
A Money Market
B Stock Market
C Derivative market D Equity Market
E Mutual Fund Market Ans- A
122. The system of Cheque clearing and
settlement between Banks based on electronic
data/images or both without physical exchange of
instruments is known as .....?
A Cheque truncation B Cheque Embossing
C Cheque Standardization D Cheque Digitalization
E Cheque Clearance Ans- A
123. As per guidelines issued by the Reserve bank
of India, how much will a customer have to pay
for checking account balance at a white label
ATM?
A Rs 1 B Rs 2 C Rs 5 D Rs 10 E Rs 20 Ans- C
124. In which country is the bank for International
Settlements Located?
A USA
B Switzerland
C Belgium
D Canada
E Japan
Ans- B
125. When a payment is made through RTGS/
NEFT, the customer/remitter receives an
acknowledgement of the payment made. What is
the form of that acknowledgement? A
Downloadable acknowledgement slip from the
Reserve bank Of India
B Email C SMS
D Both B and C E All A, B,C Ans- D
126. Which term is used to describe a situation
where an inflation rate is high, the economic
growth rate slows down, and unemployment
remains steadily high?
A Recession B Depreciation C Stagflation
D Depression
E Running inflation Ans- C
127. Which measure is used by the RBI to buy or
sell government bonds or other securities in open
market?
A Rationing of Credit B Direct Action
C Consumer Credit Regulation D Statutory
Liquidity Ratio
E Open Market Operations Ans- E
128. Which of the following authority appoint
Banking Ombudsman in India?
A SEBI
B RBI
C NABARD
D CII
E Finance Ministry Ans- B
129. To which country does Muhammad Yunus ,
who develoed the concepts of micro credit and
micro finance, belong?
A Egypt B Pakistan
C Indonesia D India
E Bangladesh Ans- E
130. Lack of access to Financial services is
technically known as.......?
A Financial instability
B Financial inclusion
C Financial stability
D Financial exclusion
E Poverty
Ans- D
131. SEBI was established in
(1) 1993
(2) 1992
(3) 1988
(4) 1990
(5) 1994 Ans- 3
132. Kisan Credit Cards are an effective way of
reaching out to the farmers by the banks. What
assistance does the farmer receive in this way?
(1) Credit facility for crops etc against an
approved limit
(2) Short term credit facility against value of his
crops
(3) Long term credit is provided against his land
holdings
(4) Loan is permissible against crops sold but
payment yet to be received by the farmer
(5) None of the above Ans-1
133. Why are interest rates charged by Micro
Finance Institutions higher than lending rates of
banks?
(1) MFIs are not allowed co source deposits from
public
(2) Banks have the benefit of cheaper funds
(3) MFIs borrow bulk of their funds from banks
(4) MFIs borrow funds from banks at high cost
and also their administrative expenses are more
(5) None of the above Ans-4
134. Which nationalized bank was the first to
sponsor a regional rural bank in India?
(1) syndicate Bank
(2) Bank of India
(3) Union Bank of India
(4) Central Bank of India
(5) None of the above Ans-1
135. Which of the following is the most important
component of the liabilities of Commercial Bank?
(1) Time deposits
(2) Demand deposits
(3) Inter-bank liabilities
(4) Other borrowings
(5) All of the above Ans-1
136. The Regulatory Authority for Regional Rural
Banks is
(1) Sponsor Bank
(2) Central Government
(3) State Government
(4) RBI and NABARD
(5) All of the above Ans-4
137. Which of the following is/are the right(s) of
customer towards his banker?
(1) To receive a statement of his account from a
banker
(2) To sue the bank for any loss damages
(3) To sue the banker for not maintaining the
secrecy of his account
(4) All of the above
(5) None of the above Ans-4
138. What does EBT stands for?
(1) Electronic Belated Transfer
(2) Electric Beginners Transaction
(3) Electronic Benefit Transfer
(4) Electronic Beginning Transaction
(5) None of the above
Ans-3
139. Banks are authorized to sell third party
products. Which are these products?
(1) Mutual funds
(2) Term deposits
(3) Debit cards
(4) Gift cheques
(5) None of the above Ans-1
140. Which of the following instruments cannot
be presented for payment in a clearing house?
(1) Demand draft
(2) Dividends
(3) Fixed deposit receipt
(4) All of the above
(5) None of the above Ans- 3
141. The rate of interest payable on a bank
deposit is determined by
(1) Indian Banks' Association
(2) The bank concerned
(3) RBI
(4) Finance ministry
(5) None of the above Ans-2
142. The maximum period for which a fixed
deposit can be accepted by a Commercial Bank is
(1) 10 years
(2) 15 years
(3) No limit
(4) 8 years
(5) None of the above Ans-1
143. Which of the following instruments cannot
be presented for payment in a clearing house?
(1) Demand draft
(2) Dividends
(3) Fixed deposit receipt
(4) All of the above
(5) None of the above Ans-3
144. An average citizen cannot open a savings
account in which of the following?
1) Commercial Bank
(2) Post office
(3) Cooperative Bank
(4) RBI
(5) None of the above Ans-4
145. Which of the following cannot open a bank
account?
(1) Person of unsound mind
(2) A minor
(3) An illiterate person
(4) A blind individual
(5) None of the above
Ans-1
146. Which of the following schemes is not meant
for investment purposes?
(1) National savings certificates
(2) Infrastructure bonds
(3) Mutual funds
(4) Letter of credit
(5) None of the above Ans-4
147. Savings account with zero balance can be
opened for
(1) persons of high net worth
(2) employees of IT companies
(3) weaker sections of society
(4) women customers
(5) None of the above
Ans-3
148. Systematic Investment Plans are a facility by
which of the following?
(1) Commercial Bank
(2) Post office
(3) Cooperative Bank
(4) RBI
(5) None of the above Ans-1
149. RBI stipulates a healthy mix of CASA in the
business figures of banks. What does it denote?
(1) Customer Analysis and Savings Pattern
(2) Cost Appreciation and Selling Analysis
(3) Current Account and Savings Account
(4) Credit and Savings Aggregate
(5) None of the above Ans-3
150. Banks are authorized to sell third party
products. Which are these products?
(1) Mutual funds
(2) Term deposits
(3) Debit cards
(4) Gift cheques
(5) None of the above
Ans-1
151. The rate at which the RBI lends Short-term
money to the banks
(1) PLR
(2) CRR
(3) Repo Rate
(4) Reverse Repo Rate
(5) None of these Ans-3
152. The Reserve Bank of India (RBI) was
nationalized on
(1) 1 January, 1949
(2) 1 July, 1955
(3) 19 July, 1969
(4) 15 April, 1980
(5) None of the above Ans-1
153. NEFT means _____
(a) National Electronic Funds Transfer system
(b) Negotiated efficient Fund Transfer System
(c) National Efficient Fund Transfer Solution
(d) Non Effective Fund Transfer system
(e) Negotiated Electronic Foreign Transfer system
Ans: (a)
154. The Reserve Bank of India was set up on the
recommendations of the
(1) Narasimham Committee
(2) Hilton-Young Commission
(3) Mahalanobis Committee
(4) Fazal Ali Commission
(5) None of the above Ans-2
155. Kisan Credit Cards are an effective way of
reaching out to the farmers by the banks. What
assistance does the farmer receive in this way?
(1) Credit facility for crops etc against an
approved limit
(2) Short term credit facility against value of his
crops
(3) Long term credit is provided against his land
holdings
(4) Loan is permissible against crops sold but
payment yet to be received by the farmer
(5) None of the above Ans-1
156. Why are interest rates charged by Micro
Finance Institutions higher than lending rates of
banks?
(1) MFIs are not allowed co source deposits from
public
(2) Banks have the benefit of cheaper funds
(3) MFIs borrow bulk of their funds from banks
(4) MFIs borrow funds from banks at high cost
and also their administrative expenses are more
(5) None of the above Ans-4
157. An ECS transaction gets bounced and you
are unable to recover your money from your
customer. Under which Act criminal action can be
initiated?
(1) Indian Penal Code
(2) Negotiable Instruments Act
(3) Criminal Procedure Code
(4) Payment and Settlements Act
(5) Indian Contract Act Ans. 2
158. Mr. Rajendra had filed a complaint with
Banking Ombudsman but is not satisfied with the
decision. What is the next option before him for
getting his matter resolved?
(1) Write to the CMD of the Bank File an appeal
before the Finance Minister
(2) File an appeal before the Banking Ombudsman
again
(3) File an appeal before the Dy. Governor RBI
(4) Simply close the matter as going to court
involves time and money
(5) None of These Ans. 2
159. The objectives of forming SHG is
(i) to build mutual trust and confidence between
the bankers and the rural poor people.
(ii) to encourage banking activities, both on the
thrift as well as credit sides, in a segment of the
population that the formal financial institutions
usually find difficult to cover.
(iii) to meet the needs of the poor by combining
the flexibility, sensitivity and responsiveness of
the Informal Credit System with the strength of
technical and administrative capabilities and
financial resources of the formal credit
institutions.
Select the correct answer using the following
codes
(1) Only (i)
(2) Both (i) and (ii)
(3) (i) and (iii)
(4) (ii) and (iii)
(5) (i), (ii) and (iii) Ans-5
160. The best alternative banking service to
branch banking to be the part of Financial
Inclusion?
(1) Establishment of small branches
(2) Setup ATMs
(3) Issuing of ATM cards
(4) Giving Credit Cards
(5) Mobile banking Ans-5
161. Which of the following is not a negotiable
Instrument?
(1) Promissory note
(2) Bill of Exchange
(3) Cheque
(4) Bank Draft
(5) Share Certificate Ans-4
162. Those instruments which can be transferred
by endorsement and delivery, but the transferee
does not get a better title than that of the
transferor is called
(1) Negotiable Instruments
(2) Quasi Negotiable Instruments
(3) Non Negotiable Instruments
(4) All of the above
(5) one of the above Ans-2
163. Which of the following statements is not
correct about Negotiable Instruments?
(2) Pay A or Order
(3) Pay to Order of A
(4) Pay A and B
(5) Pay A only
(6) Pay Bearer
Ans-4
164. The Narasimham Committee- I was set up in
(1) 1990
(2) 1991
(3) 1992
(4) 1998
(5) 2000 Ans-2
165. The Narasimham Committee-I was set up to
suggest some recommendations for Improvement
in the
(1) efficiency and productivity of the financial
institution
(2) banking reform process
(3) export of IT sector
(4) fiscal reform process
(5) None of the above Ans-1
166. Banking Ombudsman Scheme is applicable
to the business of ______?
(1) All scheduled commercial banks excluding
RRBs
(2) All scheduled commercial banks including
RRBs
(3) Only Public Sector Banks
(4) All Banking Companies
(5) All scheduled banks except private banks
Ans. (2)
167. Nationalization of banks aimed at all of the
following except ________?
(1) Provision of adequate credit for agriculture,
SME & exports
(2) Removal of control by a few capitalists
(3) Provision of credit to big industries only
(4) Access of banking to masses
(5) Encouragement of a new class of
entrepreneurs Ans. (3)
168. Base Rate is the rate below which no Bank
can allow their lending to anyone. Who sets up
this 'Base Rate' for Banks?
(1) Individual Banks' Board
(2) Ministry of Commerce
(3) Ministry of Finance
(4) RBI
(5) Interest Rate Commission of India Ans. (4)
169. Bad advances of a Bank are called _____?
(1) Bad debt
(2) Book debt
(3) Non Performing Asset
(4) Out of order accounts
(5) Overdrawn accounts Ans. (3)
170. Axis Bank is a ______?
(1) Public Sector Bank
(2) Private Sector Bank
(3) Co-operative Bank
(4) Foreign Bank
(5) Gramin Bank
Ans. (2)