50 Banking Awareness Quiz With Ans ******************************** OBJECTIVE QUESTIONS ON BANKING INDUSTRY 1. As per the notification issued by the banks, the “third party ATM usage” will now be restricted to certain withdrawals and limits only. What does it really mean? (A) The ATM cardholders will not be able to withdraw from other banks’ ATM s under any circumstances. (B) Customers of one bank may be able to withdraw only a limited amount from other banks’ATMs. (C) ATM card holders will have to pay a fee if they withdraw money from other banks’ ATMs frequently (1) Only A (2) Only B (3) Only C (4) Only B and C (5) Only A and C Answer:(1) 2. As per existing norms and policies of the RBI, Banks are required to advance how much of their total advances to priority sectors? (1) 30% (2) 35% (3) 40% (4) 25% (5) None Answer:(3) 3. The rate of interest, banks charge to its main / major and prime ; customers is popularly called as _____ (1) Risk Premium (2) Prime Lending Rate (3) Repo Rate (4) Reverse Repo Rate (5) Cost of fund Answer:(2) 6. Which of the following was the first Mutual Fund listed on the newly launched Mutual Fund platform on National Stock Exchange? (1) UTI Mutual Fund (2) SBI Mutual Fund (3) LIC Mutual Fund (4) Bank of Baroda Mutual Fund (5) None Answer:(1) 7. As per the newspaper reports, the L and T has tied up with NPCIL to make forgings for nuclear power plants. This joint venture is being developed in (1) Chennai (2) Bangalore (3) Hazira (4) Narora (5) Tara pore Answer:(3) 8. Which of the following is one of the eight Millenium Development Goals set by the UNO? (1) Eradication of Poverty and extreme hunger (2) Reduction in Nuclear war-heads in the world (3) Total peace in Iraq and Afghanistan (4) Restoration of peace in Darfur (5) None Answer:(1) 9. Transport of goods by which of the following is free from levy of the Service Tax ? (1) Indian Railways (2) Shipping Companies owned by NRIs (3) All Private Road Transport Companies (4) By the Transport Corporation of India in its own special containers (5) None Answer:(1) 10. The Reserve Bank of India has directed all the banks to ensure that the names of their customers. Individuals or corporates, do not appear in any list published by the Security Council Committee. This act /directive of the RBI is to ensure which of the following? (1) To ensure that the bank loans/ advances taken by the individuals/organizations are used only in those activities for which they are taken. (2) To ensure that money deposited in the bank has not come from unknown and unauthorized sources (3) To ensure that no one visits a foreign nation for any illegal activity by purchasing foreign currency from a bank (4) To ensure that Indians do not go to a nation where Indians are being targeted for racial discrimination (5) None Answer:(2) 11. As per the decision taken by the Government of India, all new players using spectrum band for providing 3-G spectrum mobile service to its customers will have to pay a part of their annual revenue as spectrum charges to the Government of India. What is that charge in terms of percentage? (1) 1% (2) 1.5% (3) 3% (4) 2.5% (5) None Answer:(2) 12. A borrowable account is classified as sub – standard if it is overdue for more than 90 days. It means that the account has to be overdue at the maximum for______ in order to be classified in the doubtful category: (1) 12 months (2) 15 months (3) 18 months (4) 17 months (5) None Answer:(2) 13. The National Stock Exchange recently launched Interest Rate Futures (IRF). IRF in fact is a (1) new mode of trading specifically for SME sector (2) financial mode of trading (3) electronic mode of transferring money from one account to another (4) safest and fastest mode of trading at all the stock exchanges of India simultaneously (5) None Answer:(2) 14. Which of the following cannot be called as a debt instrument as referred in financial transaction? (1) Certificate of deposit (2) Bonds (3) Stocks (4) Commercial Papers (5) Loans Answer:(5) 15. Which of the following is not a social sector programme launched by the Government of India? (1) Sarve Siksha Abhiyan (2) National Rural Employment Guarantee Scheme (3) Mid Day Meal Scheme (4) National Rural Health Mission (5) Overseas Indian Citizenship Scheme Answer:(5) 16. In case of a personal loan where there is default in repayment, say for 90 days, the account may be classified as ____ asset: (1) Sub-standard (2) Doubtful (3) Loss (4) Dormant (5) None Answer:(3) 17. What is the full form of UNEP, a term frequently seen in newspapers? (1) Universal Notification on Energy Projection (2) Universal New Education Project (3) Universal Natural Energy Project 4) United Nations Education Programme (5) United Nations Environment Programme Answer:(5) 18. Which of the following organizations / agencies has recently released “Asian Development Outlook 2011”? (1) World Bank (2) Asian Development Bank (3) UNCTAD (4) UNESCO (5) None Answer:(2) 19. ASEAN recently signed an agreement called ‘FTA’ with India. What is the full form of ‘FTA’? (1) Foreign Trade Agreement (2) Full Trade Agreement (3) Favorite Trade Acknowledgment (4) Final and Total Approach (5) Free Trade Agreement Answer:(5) 20. While returning cheques, the Uniforms Regulations and Rules for Bankers’ Clearing Houses expect the banks that the returning memo sent by banks to the collecting banks: (1) should be signed (2) should be signed or initialed (3) if it is computerized, no signatures or initials are required (4) All of the above (5) None Answer:(2) 21. While restructuring a loan account, an additional term loan has been allowed by the bank. The asset classification of this account will be as under: (1) initially standard for 90 days (2) initially sub-standard but after one year standard (3) initially standard for one year (4) usual NPA rules will be applicable for this account (5) None Answer:(3) 22. Which of the following derivative products carry a counterparty risk? (1) FC forward contract (2) currency futures (3) commodity futures (4) All of the above (5) None Answer:(1) 23. When in an interest rate swap the floating rate in one currency is exchanged for fixed rate in another currency, it is called: (1) quanto swaps (2) coup on swap (3) plain vanilla swap (4) swap option (5) None Answer:(2) 24. Very often we see in the advertisements published by Financing Institutes/Agencies stating that their products are given high or average Ratings. These Rating Agencies classify bonds/ investments in how many categories? (A) Low Risk (B) Average Risk (C) High Risk (1) Only (A) (2) Only (B) (3) Only (C) (4) All (A), (B) and (C) (5) None Answer:(4) 25. As per the reports published in various newspapers/journals etc. the economic map of the world is being redesigned. What is /are the new emerging trends of this new economic map of the world? (A) With India and Asia at the forefront the centre of economic gravity has shifted to East. (B) Emerging markets, with India among the leaders, are growing faster than old established markets. (C) Central banks of the countries have recognized that case- by-case liquidity solutions are not the answers and a market wide and globally synchronized approach is needed to solve the present crisis. (1) Only (A) (2) Only (B) (3) Only (C) (4) All (A) ,(B) and (C) (5) None Answer:(4) 26. Many a times we read a term in financial newspapers ‘SEPA’ what is the full form of the term? (1) Single Exchange Processing Agency (2) Single Euro Payments Area (3) Single Electronic Processing Agency (4) Super Electronic Purchase Agency (5) None Answer:(2) 28. As we all know more and more countries/ organizations are now going for Non-Cash Transactions and accordingly Banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product? (1) Only ATM Card (2) Only Credit Card (3) Only Prepaid Card (4) Only Debit Card (5) All are non-cash transaction products Answer:(5) 29. Which of the following taxes are not levied by the Union Government? (1) Customs (2) Corporate Tax (3) Land Revenue (4) Income Tax (5) Surcharge on Income Tax Answer:(3) 30. The telecom companies have launched their “3G Services” and MTNL; became the first telecom operator to launch the same in India. What is the full form of ‘G’ in 3G? (1) Global (2) Generation (3) Growth (4) Gravity (5) None Answer:(2) 31. We very frequently read about the activities of the Foreign Exchange Market in newspapers/magazines. Which of the following is/are the major functions of the same? (A) Transfer of purchasing power from domestic to foreign market (B) Providing credit for financing foreign trade (C) Power to purchase gold from foreign countries as most of the nations still work on Gold Standards (1) Only (A) (2) Only (B) (3) Only (C) (4) Both (A) and (B) only (5) Both (B) and (C) only Answer:(4) 32. Which of the following is/are the components of the Eiscal Deficit? (A) Budgetary Deficit (B) Market Borrowings (C) Expenditure made from Pradhan Mantri Rahat Kosh (1) Only (A) (2) Only (B) (3) Only (C) (4) All (A) , (B) and (C) (5) None Answer:(4) 33. Which of the following are the instruments of Credit Control in the hands of the RBI? (A) Lowering or raising the discount and interest rates. (B) Raising the minimum support price of the major agro products. (C) Lowering or raising the minimum cash reserves maintained by the commercial banks. (1) Only (A) (2) Only (B) (3) Only (C) (4) Both (A) and (C) only (5) Both (B) and (C) only Answer:(4) 35. The maximum amount of the total Revenue earned by the government of India comes from (1) Income Tax (2) Customs Duty (3) Excise Duty (4) Value Added Tax (5) Corporate Tax Answer:(3) 36. ‘Financial Inclusion’ is the latest powerful tool adopted by Reserve Bank of India, to fulfill the basic objective of (1) Uplifting of population lying Below Poverty Line (2) Connecting every Indian to the Country’s Banking System (3) Ensuring bank finance to all the landless agriculturists. (4) Overall financial growth backed by inflation control. (5) Inclusion of latest technology in Financial Sector of the Country. Answer:(2) 37. Which Bank is the Banker to the Central Government? (1) Central Bank of India (2) Reserve Bank of India (3) Punjab National Bank (4) State Bank of India (5) All of these Answer:(2) 38. The higher rate of growth of economy certainly reduces the (1) Gender inequalities (2) Poverty (3) Population of a country (4) Flow of foreign direct investment (5) Punjab Answer:(2) 39. RBI’s policy stance to manage interest and liquidity are used for (1) Moderate inflation and maintain economic growth (2) Moderating competition among private and public sector banks. (3) Eradicate un-employment in public sector. (4) Moderate currency supply in public hands (5) Moderate deposits in public sector banks. Answer:(1) 41. In India the interest rate on savings bank accounts in all nationalized commercial banks is fixed by (1) Union Ministry of Finance (2) Union Finance Commission (3) Indian Banks Association (4) Reserve Bank of India (5) All the banks decide together Answer:(5) 42. What is Repo Rate? (1) It is a rate at which RBI sells government securities to banks (2) It is a rate at which RBI allows small loans in the market (3) It is a rate at which banks borrow rupees from Reserve Bank of India . (4) It is a rate which is offered by Banks to their most valued customers or prime customers (5) None of these Answer:(3) 43. NPA in banking terminology denotes (1) New Para-banking Assets (2) Net Profitable Assets (3) Net Performing Assets (4) Non-performing Assets (5) New Pension Act Answer:(4) 45. When a customer draws a cheque on a bank (1) it is a mandate on that bank to pay. (2) it is a mandate on the Government of India to pay. (3) it is a mandate on the State Government to pay (4) ) it is a mandate on the RBI to pay (5) it is a mandate on the Finance Ministry to pay. Answer:(1) 46. A nationalized bank is also called by the following name (1) Private Sector Bank (2) Self Help Group (3) Cooperative Bank (4) Grameen Bank (5) Public Sector Bank Answer:(5) 47. ‘Nomination ‘for a deposit account in the bank means (1) Mandate given by the close relative/s of the depositor, to settle the death claim in case of death of the depositor. (2) Mandate decided by the bank to settle the death claim of its depositor (3) Mandate of the depositor in favour of one or more persons, to claim the amount on death of the depositor. (4) Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor. (5) Court order instructing the banks to settle the death claim of its depositor. Answer:(4) 48. In the following accounts operation by cheques is permitted (1) Savings bank accounts and fixed deposit accounts. (2) Current accounts and fixed deposit accounts. (3) Savings bank accounts and floating loan accounts. (4) Savings bank accounts and cash accounts. (5) Savings bank accounts and current accounts. Answer:(5) 49. Banks cannot do the following business (1) accept demand and time deposits from public. (2) accept items for keeping in safe custody. (3) sell gold coins. (4) buy commodities for trading. (5) accept foreign currency for selling to money changers. Answer:(4) 50. ‘Bulls and Bears’ are terms used in (1) Bullion markets (2) Vegetable markets (3) Stock Exchange (4) Commodity Markets (5) None of these Answer:(3)
Posted on: Sun, 02 Nov 2014 09:49:37 +0000
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