Banking_Awareness_-_Part_1-complete-test_lyst8280 - Copy

5/17/2021 Banking Awareness - Part 1-complete-test
Banking Awareness - Part 1

MCQs
Q.1) Which is the first Indian Commercial Bank that was fully owned and managed by
Indians ?
[A] Central Bank of India
[B] State Bank of India
[C] Allahabad Bank
[D] Canara Bank
[E] Union Bank
Q.2) Which of the following banks started as a private shareholders bank, mostly by
European shareholders ?
[A] Bank of India
[B] Bank of Baroda
[C] Dena Bank
[D] Imperial Bank of India
[E] South Indian Bank
Q.3) Which of the following was the first Indian bank that started solely with Indian Capital?
[A] Punjab National Bank
[B] Andhra Bank
[C] Indian Overseas Bank
[D] Syndicate Bank
[E] None of these
Q.4) In which of the following cities, the head office of Corporation Bank is situated ?
[A] Mumbai
[B] Bengaluru
[C] Mangalore
[D] Kolkata
[E] Manipal
Q.5) Which of the following statements is/are true about NABARD ?
https://courses.edutap.co.in/admin/products/all-questions/201587 1/11
[A] It is a development bank in the sector of Regional Rural Banks in India.
[B] It provides and regulates credits in the rural area.
[C] It gives assistance for the promotion and development of rural sectors, mainly
agriculture.
[D] It finances rural crafts.
[E] All of these.
Q.6) Which of the following statements is/are true about Co-operative Banks in India ?
[A] It has a three-tire set-up.
[B] State Co-operative Banks does not have access to RBI
[C] It is an urban oriented Bank
[D] It functions on sound business principles.
[E] None of these.
Q.7) Fiscal policy is related with which of the following ?
[A] Public Revenue and Expenditure
[B] Public Revenue and Expenditure
[C] Import and Export
[D] Issue of Currency
[E] None of these
Q.8) What is the function of IRDA ?
[A] Plan for Financial Inclusion
[B] Regulate insurance business in India
[C] Hiring & Purchasing assets
[D] Provide relief packages to the Farmers
[E] None of these
Q.9) Which of the following organizations decides Repo Rate ?
[A] SEBI
[B] IMF
[C] AMFI
[D] SBI
[E] RBI
Q.10) Which of the following is/are true about IMF?
[A] It's headquarters is situated at Washington, DC.
[B] It works to foster economic stability and global growth by providing policy, advice and
financing to members.
[C] It negotiates conditions on lending and loans under their policy.
[D] It oversees the fixed exchange rate arrangements between countries.
[E] All of these
Q.11) In which year, Vijaya Bank was nationalized?
[A] 1969
[B] 1950
[C] 1959
[D] 1980
[E] 2000
Q.12) Who among the following is the chief of IMF?
[A] Robert Zoelick

[B] Christine Lagarde
[C] Kristalina Georgieva
[D] Takehiko Nakao
[E] None of these
Q.13) Which of the following is a bank-related term?
[A] Writ
[B] Blue Book
[C] Blockade
[D] Liquid
[E] Real time Gross Settlement
Q.14) Which of the following is not a Bank?
[A] HSBC
[B] BNP Paribas
[C] Barclays
[D] Lufthansa
[E] All are banks
Q.15) Which of the following is the main aim of financial inclusion ?
[A] to maintain a certain quantity of liquid assets with themselves at any point of time of their
total time and demand liabilities.
[B] to control money supply in the economy
[C] to provide basic banking services to all sections of society in urban areas or rural areas
at affordable cost
[D] Only A and B
[E] None of these
Q.16) Which of the following is not a Foreign bank?
[A] Citi Bank
[B] HSBC
[C] BNP Paribas
[D] Oriental Bank of Commerce
[E] Taib Bank
Q.17) What is known as the certain percentage of bank deposits which banks are required
to keep with RBI in the form of reserves or balances ?
[A] Statutory liquidity ratio
[B] Repo Rate
[C] Reverse Repo Rate
[D] Cash Reserve Ratio
[E] None of these
Q.18) Which of the following statements is/are true about Marginal Standing Facility?
[A] Banks can avail funds on overnight basis below the stipulated SLR up to two per cent of
their respective Net Demand
[B] Banks can avail funds from the RBI on overnight basis against their excess SLR
holdings
[C] Bank can meet the liquidity requirements of mutual funds
[D] Bank can get loans from RBI for their emergency needs
[E] All of these
Q.19) The rate, at which RBI lends money to commercial banks against securities when
commercial banks have less funds for Short Term, is/are known as which of the following ?
[A] Statutory Liquidity Ratio
[B] Repurchase Rate
[C] Policy Rate
[D] Only A and B
[E] Repo Rate
Q.20) What is the main tool to control money supply in case of banking?
[A] Bank Rate
[B] Repo Rate
[C] Reverse Repo Rate
[D] LTV Ratio
[E] None of these
Q.21) Which of the following is the first bank of India ?
[A] Allahabad Bank
[B] State Bank of India
[C] Punjab National Bank
[D] Bank of Hindustan
[E] None of these
Q.22) Which one of the following is the largest Foreign Bank in India?
[A] HSBC
[B] Standard Chartered Bank
[C] Taib Bank
[D] Barclays Bank
[E] None of these
Q.23) Which of the following is the First Regional Rural Bank in India ?
[A] Kashi Gomti Samyut Gramin Bank
[B] Andhra Pradesh GrameenaVikas Bank
[C] Prathama Bank
[D] Bharatiya Mahila Bank
[E] None of these
Q.24) Which of the following is not an initiative taken by RBI and GOI towards financial
inclusion?
[A] Swabhimaan Scheme
[B] Easy KYC norms
[C] Granting new bank licenses
[D] Banking correspondent model
[E] Pradhan Mantri Mudra Yojana
Q.25) Which of the following statements is/are not true about Pradhan Mantri Jan –Dhan
Yojana?
[A] Every Indian family enrolled in a bank to open zero balance account
[B] The account can be opened by can be open by giving only one document either proof of
address and proof of identity
[C] It provides various different profit to account holder like insurance cover, overdraft facility
,Atm card etc.
[D] The main aim is to open one bank account for every adult person in every family
[E] All are true

Answers
MCQs
Q.1)A Q.2)D Q.3)A Q.4)C Q.5)E Q.6)A Q.7)A Q.8)B Q.9)E Q.10)E
Q.11)D Q.12)C Q.13)E Q.14)D Q.15)C Q.16)D Q.17)D Q.18)E Q.19)E
Q.20)B Q.21)D Q.22)B Q.23)C Q.24)E Q.25)D

Explanations
MCQs
Q.1) Explanation:
Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. Its headquarters is in Mumbai.
Q.2) Explanation:
Imperial bank was believed to have towards European businesses. The Imperial Bank of
India (IBI) was the oldest and the largest commercial bank of the Indian subcontinent, and
was subsequently transformed into the State Bank of India in 1955.
Q.3) Explanation:
Punjab National bank opened for business on 12 April 1895 in Lahore. PNB has the
distinction of being the first Indian bank to have been started solely with Indian capital that
has survived to the present.
Q.4) Explanation:
Corporation Bank is a public-sector banking company headquartered in Mangalore, India.

The bank has a pan-Indian presence.
Q.5) Explanation:
NABARD is a Development Bank with a mandate for providing and regulating credit and
other facilities for the promotion and development of agriculture, small-scale industries,
cottage and village industries, handicrafts and other rural crafts and other allied economic
activities in rural areas.
Q.6) Explanation:
Cooperative bank is the bank that holds deposits, makes loans and provides other financial
services to cooperatives and member-owned organizations. Also known as Banks for
Cooperatives.
Q.7) Explanation:
In economics and political science, fiscal policy is the use of government revenue collection
and expenditure to monitor and influence a nation's economy.
Q.8) Explanation:
The Insurance Regulatory and Development Authority of India is an autonomous, statutory

body tasked with regulating and promoting the insurance and reinsurance industries in
India.
Q.9) Explanation:
In Indian Banking terms, repo rate is the rate at which the Reserve Bank of India lends
money to all the commercial banks in the country in the event of scarcity of funds.
Q.10) Explanation:
The International Monetary Fund (IMF) is an organization of 189 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.
Q.11) Explanation:
Vijaya bank was nationalised on 15 April 1980. At the time of nationalization, the bank had
571 branches, with a total business of ₹605.95 crore and a staff strength of 9059.
Q.12) Explanation:
Kristalina Georgieva (Bulgarian economist) is the chief of IMF. She has taken the charge
from 1st October 2019 from Christine Lagarde.
Q.13) Explanation:
Real Time Gross Settlement (RTGS) is an electronic form of funds transfer where the
transmission takes place on a real time basis.
Q.14) Explanation:
All the given options are banks except for Lufthansa, which is the largest airline from
Germany and, when combined with its subsidiaries, also the largest airline in Europe in
terms of passengers carried.
Q.15) Explanation:
Financial inclusion is where individuals and businesses have access to useful and
affordable financial products and services that meet their needs that are delivered in a
responsible and sustainable way.
Q.16) Explanation:
Oriental Bank of Commerce is an India-based bank established in Lahore, is one of the

public sector banks in India. It is one of the promising public sector banks in India
headquartered at Gurugram, India.
Q.17) Explanation:
Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the
Reserve Bank of India (RBI) to be maintained with the latter in the form of liquid cash.
Q.18) Explanation:
Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by
Reserve Bank of India in its credit policy of May 2011. MSF is the rate at which the banks
are able to borrow overnight funds from RBI against the approved government securities.
Q.19) Explanation:
The rate of interest at which the Reserve Bank of India (RBI) lends money to other banks is
called repo rate.
Q.20) Explanation:
In the event of inflation, central banks increase repo rate as this acts as a disincentive for
banks to borrow from the central bank. This ultimately reduces the money supply in the
economy and thus helps in arresting inflation.
Q.21) Explanation:
The Bank of Hindustan Was the First Bank to be established in India in 1770. It was
established by the agency house of Alexander and Company.
Q.22) Explanation:
Standard Chartered Bank is India's largest international bank with 100 branches in 43 cities,
and we have been operating here since 1858.
Q.23) Explanation:
Prathama Bank is the first Regional Rural Bank of India, established on 2nd October, 1975,
sponsored by Syndicate Bank, with its Head Office at Moradabad in accordance with
Regional Rural Bank Ordinance 1975 issued on 26th September, 1975.
Q.24) Explanation:
The Pradhan Mantri Mudra Yojana or PMMY is a flagship scheme of the Government of
India to extend affordable credit.
Q.25) Explanation:
Pradhan Mantri Jan Dhan Yojana, is financial inclusion program of Government of India
which is applicable to 18 to 65 years age group, that aims to expand and make affordable
access to financial services such as bank accounts, remittances, credit, insurance and
pensions.

Banking_Awareness_-_Part_1-complete-test_lyst8280 - Copy

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Banking_Awareness_-_Part_1-complete-test_lyst8280 - Copy

Uploaded by

Copyright:

Available Formats

5/17/2021 Banking Awareness - Part 1-complete-test

Banking Awareness - Part 1

[A] Central Bank of India

[B] State Bank of India

[C] Allahabad Bank

[D] Canara Bank

[E] Union Bank

[A] Bank of India

[B] Bank of Baroda

[C] Dena Bank

[D] Imperial Bank of India

[E] South Indian Bank

[A] Punjab National Bank

[B] Andhra Bank

[C] Indian Overseas Bank

[D] Syndicate Bank

[E] None of these

Q.5) Which of the following statements is/are true about NABARD ?

[A] It is a development bank in the sector of Regional Rural Banks in India.

[B] It provides and regulates credits in the rural area.

[D] It finances rural crafts.

[E] All of these.

[A] It has a three-tire set-up.

[B] State Co-operative Banks does not have access to RBI

[C] It is an urban oriented Bank

[D] It functions on sound business principles.

[E] None of these.

Q.7) Fiscal policy is related with which of the following ?

[A] Public Revenue and Expenditure

[B] Public Revenue and Expenditure

[C] Import and Export

[D] Issue of Currency

[E] None of these

Q.8) What is the function of IRDA ?

[A] Plan for Financial Inclusion

[B] Regulate insurance business in India

[C] Hiring & Purchasing assets

[D] Provide relief packages to the Farmers

[E] None of these

Q.9) Which of the following organizations decides Repo Rate ?

Q.10) Which of the following is/are true about IMF?

[A] It's headquarters is situated at Washington, DC.

[C] It negotiates conditions on lending and loans under their policy.

[D] It oversees the fixed exchange rate arrangements between countries.

[E] All of these

Q.11) In which year, Vijaya Bank was nationalized?

Q.12) Who among the following is the chief of IMF?

[A] Robert Zoelick

[C] Kristalina Georgieva

[D] Takehiko Nakao

[E] None of these

Q.13) Which of the following is a bank-related term?

[B] Blue Book

[E] Real time Gross Settlement

Q.14) Which of the following is not a Bank?

[B] BNP Paribas

[E] All are banks

Q.15) Which of the following is the main aim of financial inclusion ?

[B] to control money supply in the economy

[D] Only A and B

[E] None of these

Q.16) Which of the following is not a Foreign bank?

[A] Citi Bank

[C] BNP Paribas