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Banking Awareness 1
Banking Awareness 1
1. An account that can be opened by business organisations and also individuals is known as a?
a) Term deposit b) Checking Account c) Saving Bank deposit d) No Frills Accounts
e) Current deposit
2. A worldwide financial messaging network which exchanges messages between banks and
financial institutions is known as?
a) CHAPS b) SWIFT c) NEFT d) SFMS e) CHIPS
3. Buy now & pay later refers to?
a) Foreign Currency b) Internet Banking c) US Dollars d) Traveler's cheques e) Credit Cards
4. Which one of the following is not 'Money Market Instrument'?
a) Treasury Bills b) Commercial Paper c) Fixed Deposit d) Equity Shares e) None
5. Which one of the following is a retail banking product?
a) Home Loans b) Working capital finance c) Corporate Term Loans d) All the above e) None
6. Finance Ministry has asked the RBI to allow common ATMs that will be owned and managed by
non-banking entities hoping to cut transaction costs for banks. Such ATMs are known as?
a) Black label ATMs b) Offsite ATMs c) On site ATM's or red ATMs d) Third party ATMs e) White label
7. Technological advancement in the recent times has given a new dimension to banks, mainly to
which one of the following aspects?
a) New Age Financial Derivatives b) Service Delivery Mechanism c) Any Banking d) Any type banking
e) Multilevel Marketing
17. Base Rate is the rate below which no Bank can lend their funds. Who sets up this 'Base Rate'
for Banks?
a) Individuals Banks Board
b) Ministry of Commerce
c) Ministry of Finance
d) RBI
e) Interest Rate Commission of India
21. By increasing repo rate, the economy may observe the following effects ______
a) Rate of interest on loans and advances will be costlier.
b) Industrial output would be affected to an extent.
c) Banks will increase rate of interest on deposits.
23. Which of the following schemes is launched to provide pension to the members of
unorganized sectors in India?
a) Swabhiman
b) Jeevan Dhara
c) Jeevan Kalyan
d) ASHA
e) Swalamban
24. A cheque returned for insufficiency of funds. Payee will have right to issue notice and
approach court of law for justice under section 138 of which act?
a) Indian Penal Code
b) Negotiable Instrument Act
c) Criminal Procedure Code
d) Payment and Settlement Act
25. Mr. Rajendra had filed a complaint with Banking Ombudsman and is not satisfied with the
decision. What is the next option available for him to get his problem redressed?
a) Write to the CMD of the Bank.
b) File an appeal before the Finance Minister.
c) File an appeal before the Banking Ombudsman again.
d) File an appeal before the Dy. Governor RBI.
e) Simply close the matter as going to court involves time and money.
27. Bank branches which can undertake foreign exchange business directly are known as:
a) Authorized dealers
b) Foreign dealers
c) Overseas branches
d) Approved dealers
e) Exchange branches
28. Insurance cover for bank deposits in our country is provided by ____
a) SBI
b) Govt of India
c) GIC
d) LIC
e) DICGC
29. The Financial Literacy does not include which of the following?
a) How to invest the funds
b) How to use the limited funds carefully
c) How to minimize the risks
d) How to reinvest the money earned
e) None of these
33. Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are terms most closely related
to which of the following industries/ markets?
a) Capital Market
b) Banking industry
c) Commodities market
d) Money Market
e) Mutual funds
34. What is the maximum period for which domestic term deposits are normally accepted by the
banks in our country?
a) 3 yr
b) 5 yr
c) 7 yr
d) 10 yr
e) 12 yr
35. If you wish to purchase some US Dollars for your travel abroad, you should approach?
a) The Ministry of Finance
b) The US Embassy
c) Any Bank Branch authorized to do such activity
d) The Reserve Bank of India
e) External Affairs Ministry
36. What does the letter 'L' stands for in the term LAF commonly used in financial/economic
news?
a) Liquidity
b) Least
c) Liabilities
d) Long
e) Liquid
38. Which of the following is not the name of the a Banking Organization?
a) HDFC
b) IDBI
c) YES
d) SEBI
e) ICICI
a) Granting loans
b) Collecting cheques/ drafts of Customers
c) Arranging VISA for students for abroad education
d) Issuing bank drafts
e) Selling Gold/Silver Coins.
42. Reserves that can act as a liquidity buffer for Commercial Banks during crisis times are
a) CAR
b) CRR
c) CAR & CRR
d) CRR & SLR
e) SLR
Answers
1) a;
2) b;
3) e;
4) c; 5) a;
6) e; 7) b;
8) a;
16) e. 17) a 18) c; 19) a; 20) b; 21) a; 22) c; 23) e; 24) b; 25) d; 26) a; 27) a; 28) e; 29) e; 30) e;
31) a; 32) a; 33) b; 34) d; 35) c; 36) a. 37) e; 38) d; 39) d; 30) b; 41) c; 42) d.