Banking Awareness E Book Part 1

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E Book on Banking Awareness Part 1
Banking Awareness Questions:
We are now releasing, part 1 of Book on Banking Awareness
Questions. These questions are very important for upcoming Bank
IBPS, SBI, RBI and other Bank Exams. We are providing you first part
of the book with some very important questions along with detailed
explanation and answer. Please provide your feedbacks on how you
find this book and our other E books.

Question: Financial year in banks is a period from:
A. January to December
B. May to June
C. April to March
D. April to October
Answer and Explanation: Financial year in a bank is from 1
st
April to 31
st

March; hence the correct answer is option C.

Question: Pure Banking Nothing Else is a slogan raised by:
A. HDFC Bank
B. State Bank of India
C. Axis Bank
D. ICICI Bank
Answer and Explanation: Correct answer is State Bank of India, option B

Question: The term Smart Money refers to which of the following?
A. Mobile Banking
B. Tab Banking
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C. Credit Cards
D. Internet Banking
Answer and Explanations: Smart Money refers to plastic money i.e.
Credit Cards, hence correct answer is option C.

Question: SEBI is a
A. Statutory body
B. Advisory body
C. Constitutional body
D. Non statutory body
Answer and Explanations: Securities and Exchange Board of India
(SEBI) is a statutory body, hence correct answer is option A.

Question: Reserve Bank of India was nationalized in:
A. 1945
B. 1949
C. 1950
D. 1955
Answer and Explanations: The correct answer is option B, 1949.
The Reserve Bank of India was nationalized with effect from 1st January,
1949 on the basis of the Reserve Bank of India (Transfer to Public
Ownership) Act, 1948.

Question: State Bank of India was earlier known as:
A. National Bank of India
B. Premier Bank of India
C. State Bank of Bharat
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D. Imperial Bank of India
Answer and Explanations: Correct answer is option D. On 1 July 1955,
the Imperial Bank of India became the State Bank of India.

Question: The term Paper Gold means:
A. Paper currency
B. Special drawing rights of the IMF
C. Paper with gold coating
D. Another name of US Dollar
Answer and Explanations: The correct answer is option B.
Special drawing rights are supplementary foreign exchange reserve assets
defined and maintained by the International Monetary Fund (IMF). The
SDR represents a claim to currency held by IMF member countries for
which they may be exchanged. It can only be exchanged for Euro,
Japanese yen, pounds sterling, or U.S. dollars.

Question: Bulls and Bears are term used in:
A. Bullion Market
B. Agriculture
C. Stock Exchange
D. Supermarket
Answer and Explanations: The correct answer is Stock Exchange, option
C.
The terms bull market and bear market describe upward and downward
market trends, respectively and can be used to describe either the market
as a whole or specific sectors and securities.

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Question: MICR is a term associated with which industry?
A. Aviation
B. Agriculture
C. Banking
D. Tourism
Answer and Explanations: The correct answer is Banking Industry, option
C.
Magnetic ink character recognition (MICR) is a character-recognition
technology used mainly by the banking industry to ease the processing and
clearance of cheques and other documents. The MICR encoding called the
MICR line, is at the bottom of cheques and other vouchers and typically
includes the document-type indicator, bank code, bank account number,
cheque number, cheque amount, and a control indicator.

Question: Which of the following Bank is the Banker to the Central
Government?
A. State Bank of India
B. Punjab National Bank
C. Central Bank of India
D. Reserve Bank of India
Answer and Explanations: Correct answer is Reserve Bank of India,
option D.
The RBI is a banker to the government and performs merchant banking
function for the central and the state governments. It also acts as their
banker.

Question: Grameen Bank and Micro Credit are associated with:
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A. Manmohan Singh
B. Bill Gates
C. Md. Yunus
D. Aung San Su Ki

Answer and Explanations: Correct answer is Md. Yunus, option C.
Muhammad Yunus is a Bangladeshi social entrepreneur, banker,
economist and civil society leader who was awarded the Nobel Peace Prize
for founding the Grameen Bank and pioneering the concepts of microcredit
and microfinance.

Question: Federal Reserve is the Central Bank of:
A. France
B. Pakistan
C. USA
D. Japan
Answer and Explanations: Correct answer is USA, option C.
The Federal Reserve System (also known as the Federal Reserve, and
informally as the Fed) is the central banking system of the United States.

Question: The Headquarters of NABARD is situated in:
A. Delhi
B. Mumbai
C. Lucknow
D. Ahmedabad
Answer and Explanations: The correct answer is option B, Mumbai.

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Question: Bank for International Settlement (BIS) headquarter is situated
at:
A. Manila
B. Delhi
C. Mumbai
D. Basle, Switzerland

Answer and Explanations: The correct answer is option D, Basle.
The Bank for International Settlements (BIS) is an international
organization of central banks which "fosters international monetary and
financial cooperation and serves as a bank for central banks". It is based in
Basel, Switzerland.

Question: The target group for Education Loans is:
A. Businessmen
B. Students
C. Old age people
D. Service Class people
Answer and Explanations: Education loan target market is students,
hence correct option is B.

Question: What is the full form of ATM?
A. Automatic Teller Machine
B. Auto Time Machine
C. Automated Teller Machine
D. None of these
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Answer and Explanations: Correct answer is option C, Automated Teller
Machine.

Question: Reserve Bank of India was established in the year:
A. 1931
B. 1935
C. 1938
D. 1939
Answer and Explanations: The correct answer is option B, 1935.
The Reserve Bank of India (RBI) is India's Central Banking Institution,
which controls the Monetary Policy of the Indian Rupee. It was established
on 1 April 1935 during the British Rule in accordance with the provisions of
the Reserve Bank of India Act, 1934.

Question: The International Bank of Reconstruction and Development
(IBRD) is better known as:
A. ADB
B. UNESCO
C. IMF
D. World Bank
Answer and Explanations: Correct answer is option D, World Bank

Question: Regional Rural Banks were established in the year:
A. 1970
B. 1975
C. 1980
D. 1985
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Answer and Explanations: The correct answer is option B, 1975
Regional Rural Banks (RRBs) were established in 1975 under the
provisions of the Ordinance promulgated on the 26th September 1975 and
followed by Regional Rural Banks Act, 1976 with a view to develop the
rural economy. The Government of India, the concerned State Government
and the bank, which had sponsored the RRB contributed to the share
capital of RRBs in the proportion of 50%, 15% and 35%, respectively.

Question: What is NIKKEI?
A. Name of a Bank in China
B. Central Bank of South Korea
C. Central Bank of Philippines
D. Share Price Index of Tokyo Share Market
Answer and Explanations: The correct answer is option D, Share Price
Index of Tokyo Share Market

Question: Where are the Headquarters of International Monetary Fund?
A. Paris
B. New York
C. Washington D.C.
D. London
Answer and Explanations: The correct answer is option C, Washington
D.C.
The International Monetary Fund (IMF) is an international organization that
was initiated in 1944 at the Bretton Woods Conference and formally
created in 1945 by 29 member countries. Its headquarters are in
Washington, D.C., United States.
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