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Banking Awareness Model Questions - 1

  1. Who among the following is appointed as the Chairman of the 21st Law Commission?
    a) RM Lodha
    b) Balbir Singh Chauhan
    c) HL Bakshi
    d) N Kamakodi
    e) P Jayarama Bhatt
  2. The Memorandum of Association is a document which:
    a) Describes the powers of the share holders of the company
    b) Defines the powers of the officials of the company
    c) Defines the constitution, objectives, authorised capital and gives names and address of registered office and defines the liability of the shareholders
    d) Defines the internal functions of a company
    e) None of the above
  3. Which of the following statements is true for a public limited company?
    a) The number of share holders is limited
    b) Certificate of Commencement of Business is not compulsory to open bank account
    c) The liability of Managing Director is limited
    d) The liability of the shareholders is limited
    e) Since public Limited company can go for public issue, the registration of Public limited company is done by SEBI
  4. Against which of the following securities, the banks cannot grant loans:
    a) Shares of approved companies
    b) Fixed deposit of same bank
    c) Debentures of companies
    d) Certificate of deposit issued by banks
    e) None of the above
  5. The RBI released a draft regulatory framework to allow the entry of new kind of NBFC that can act as a(n) ____
    a) Small bank
    b) e-verifier
    c) KYC facilitator
    d) Credit aggregator
    e) Account aggregator
  6. Under customer Acceptance Policy Bank's customers are classified into ___
    a) Nil, High, Medium, Low Risk category
    b) Zero, High, Medium, Low Risk category
    c) Highest, High, Medium, Low Risk Category
    d) High, Medium, Low Risk Category
    e) None of the above
  7. Banker's code for customers was released by:
    a) RBI
    b) SEBI
    c) BCSBI
    d) IBA
    e) Central Government
  8. What is the full form of the term CAGR, a useful measure of growth over multiple time periods?
    a) Compound Audited Growth Rate
    b) Calculated Annual Growth Rate
    c) Compound Annual Growth Rate
    d) Compound Annual Gross Rate
    e) None of these
  9. The debenture holders of a company are its:
    a) Owners
    b) Debtors
    c) Creditors
    d) Shareholders
    e) Agents
  10. "Kyat" is the currency of:
    a) Thailand
    b) Sri Lanka
    c) Bhutan
    d) Myanmar
    e) Malaysia
  11. As per the Budget proposals for 2016-17, what per cent Krishi Kalyan Cess will be levied on all services?
    a) 0.25 per cent
    b) 0.50 per cent
    c) 0.75 per cent
    d) 1 per cent
    e) 1.35 per cent
  12. The gap between the value of export and import of goods during a particular period is called:
    a) Balance of payment
    b) Trade balance
    c) Current account position
    d) Capital account position
    e) None of the above
  13. Which of the following is the objective of asset liability management?
    a) Assets and liabilities are managed in such a manner that risk is minimum to the bank
    b) Residual maturity of assets and liabilities should be equalized
    c) Net earnings from interest is maximized within the overall risk-preference of the institutions
    d) a or b
    e) All of the above
  14. Which of the following activity cannot be undertaken by Business Correspondents:
    a) Disbursement of small value loans
    b) Collection of small value deposit
    c) Collection of transaction fee from customers
    d) Recovery of principal and interest
    e) None of the above
  15. Which of the following bank was established in the year 1982?
    a) NABARD
    b) Small Industries Development Bank of India
    c) EXIM Bank
    d) Both a and c
    e) None of these
  16. FATF means:
    a) Financial Accounting Trade Federation
    b) Financial Association of Traders in France
    c) Foreign Authority Trade Federation
    d) Financial Action Task Force
    e) Financial Assistance Task Force
  17. Whoever commits the offence of money laundering shall be punishable with:
    a) Minimum imprisonment of 3 years and maximum 7 years
    b) Fine of Rs. 5 lakhs
    c) Both a and b
    d) 12 years imprisonment
    e) Three years imprisonment or Rs. 3 lakhs fine or both
  18. What is a derivative?
    a) It is a contract for trading in goods
    b) It is a contract for sale and purchase of shares
    c) A financial contract payable in future and based on an underlying financial contract
    d) A financial contract based on purchase of demat shares
    e) None of the above
  19. Which of the following types of companies/organisations issue "ULIP"?
    a) Banks
    b) Insurance companies
    c) NHB
    d) RBI
    e) None of these
  20. While going for public issue of shares, book building is:
    a) Used by stock exchanges for trading as it is more efficient than the traditional open outcry system
    b) Used by speculators to artificially increase share prices
    c) Used in the public issue process for efficient price and demand estimation for the issuer
    d) Used by bookies in horse racing
    e) None of the above
  21. Name the odd one out:
    a) ICRA
    b) CIBIL
    c) CARE
    d) CRISIL
    e) None of the above
  22. "Bridge loan" means:
    a) A loan given by bank for longer period
    b) A loan given by bank for a short period to make up for a temporary shortage
    c) A loan given by bank for medium term
    d) A loan for one day
    e) None of the above
  23. A trust is formed for the benefit of:
    a) A person
    b) A group of persons
    c) The family members
    d) a and b
    e) a, b and c
  24. Which among the following is the direct tax?
    a) Sales tax
    b) Excise duty
    c) Custom duty
    d) Income tax
    e) None of these
  25. Normally Indian Banks will offer loan facility to borrowers in the form of:
    a) Cash credit
    b) Term Loan
    c) Non Fund Based
    d) Both a and c
    e) All a, b and c
  26. The term "Blue chip" means:
    a) Government securities printed in blue and are readily encashable with RBI
    b) Preference shares of joint stock companies
    c) Shares of progressive, soundly run public limited companies with excellent dividend record
    d) Shares initially allotted to promoter directors
    e) A product used electronic companies
  27. The term "Bulls & Bears" is used in:
    a) Credit rating
    b) Vegetable markets
    c) Stock exchange
    d) Risk management
    e) None of the above
  28. What is "open market operation?"
    a) It is release of funds by RBI in open market
    b) It is buying or selling of government securities in the open market by the central bank to inject or suck liquidity in the system
    c) It is standby facility by RBI
    d) It is selling of own share in open market
    e) None of these
  29. In PM Employment Generation Program, the maximum project cost in case of manufacturing units is restricted to:
    a) Rs.5 lakhs
    b) Rs.10 lakhs
    c) Rs.25 lakhs
    d) Rs.50 lakhs
    e) No such limit
  30. What is the full form for ULIP?
    a) Universal Life and investment
    b) Universal Loan and Investment plan
    c) Uniformly Loan and Insurance plan
    d) Unit Linked Insurance plan
    e) None of these
  31. In Core banking solution (CBS), the term "core" stands for:
    a) Customer order real time exchange
    b) Centralized online real-time exchange
    c) Customized online real-time exchanged
    d) Centralized open real-time exchanged
    e) None of these
  32. What is closed economy?
    a) When deficit financing take place
    b) When only export take place
    c) When neither import nor export takes place
    d) When only import takes place
    e) None of these
  33. What is the limit on number of partners in a partnership firm imposed by Companies act 2013?
    a) 10
    b) 20
    c) 50
    d) 100
    e) 200
  34. Which of the following accounts can be opened by a non-resident, who has permanently returned to India recently?
    a) NRE account
    b) FCNR account
    c) NRO account
    d) Resident Foreign Currency account
    e) None of the above
  35. Beyond the minimum amount of Rs.1 lakh for a CD, it can be issued in the multiple of Rs. ____
    a) 10 lakhs
    b) 5 lakhs
    c) 1 lakh
    d) 0.5 lakhs
    e) None of these
  36. Which of the following is related to financial inclusion?
    a) Internet banking
    b) Offshore Banking
    c) Business correspondent
    d) Stimulus package
    e) None of these
  37. "Aapka bhala, Sabka bhala" is the tagline of:
    a) IDBI Bank
    b) Federal Bank
    c) ICICI Bank
    d) Bandhan Bank
    e) HDFC Bank
  38. Name the online portal launched by The Prime Minister Narendra Modi for trading in agriculture produce that is expected to liberate farmers from the clutches of middle-men and realise fair market value for their yields.
    a) Rastriya Agriculture Market Portal (e-RAM)
    b) Bharat Agri Market Portal (e-BAM)
    c) National Agriculture Market portal (e-NAM)
    d) All Farmers Market portal (e-AFM)
    e) None of the above
  39. As per latest guidelines of RBI, among policy rates which of the following is/are correct?
    a) Reverse Repo Rate will be lowest of the four
    b) Repo Rate will be 50 Basic Points more than the Reverse Repo Rate
    c) Marginal Standing Facility Rate will be 50 Basic Points more than the Repo Rate
    d) Bank Rate will be equal to the Marginal Standing Facility Rate
    e) All of the above
  40. As per the RBI directives all payments of Rs.___ and above is bound to be made in electronic mode.
    a) 10 lakh
    b) 10 crore
    c) 1 crore
    d) 5 lakhs
    e) 1 lakh
  41. When a bill of exchange is payable on some fixed future date, such bill is called:
    a) Future Bill
    b) Usance Bill
    c) Bill Payable (BP)
    d) Demand bill
    e) None of the above
  42. Regional Rural Banks are required to maintain CRR at ___ % of NDTL
    a) 3%
    b) 10.50%
    c) 15.00%
    d) Same as other schedule banks
    e) None of the above
  43. CRISIL has downgraded the ratings of 8 public sector banks. Which of the following public sector banks are part of it?
    a) Bank of India
    b) Central Bank of India
    c) Corporation Bank
    d) Dena Bank, IDBI Bank
    e) All the above
  44. Which stock exchange became the newest stock exchange in Asia which started its operations in March 2016?
    a) Italian Stock Exchange
    b) Hong Kong Stock Exchange
    c) Korea Exchange
    d) Yangon Stock Exchange (Myanmar)
    e) Shenzhen Stock Exchange
  45. The Return on Unclaimed Deposits to RBI should contain deposits which have remained unclaimed for a period of ___ years
    a) 3
    b) 5
    c) 10
    d) 8
    e) 12
  46. Recently which state became the first in India to have passed a landmark legislation providing statutory backing to land records, effectively guaranteeing land and property ownership?
    a) Andhra Pradesh
    b) Telangana
    c) Tamil Nadu
    d) Gujrat
    e) Rajasthan
  47. A rural branch is one which is located in a place with population of ___ .
    a) not exceeding 10,000
    b) less than 10,000
    c) not exceeding 50,000
    d) less than 50,000
    e) less than 2,000
  48. The RBI reduced the minimum daily maintenance of the Cash Reserve Ratio (CRR) from 95% of the requirement to___ with effect from the fortnight beginning 16th April 2016
    a) 85%
    b) 80%
    c) 75%
    d) 90%
    e) 92%
  49. Aadhar Card consists of ____ digits.
    a) 10
    b) 11
    c) 12
    d) 15
    e) 8
  50. Which country during April 2016 became the 189th and the latest member of the IMF and the World Bank?
    a) Nauru
    b) Nepal
    c) Argentina
    d) South Sudan
    e) Algeria
  51. Under the deregulated regime the interest rates are fixed by the ___
    a) RBI
    b) IBA
    c) Board of Directors
    d) ALCO if authorised by the bank
    e) c or d
  52. The Headquarters of the Bank of International Settlement is located at:
    a) New York
    b) London
    c) Washington
    d) Basel
    e) Brazil
  53. Which of the following banks fall under Public Sector?
    a) ICICI Bank
    b) IDBI Bank
    c) HDFC Bank
    d) AXIS Bank
    e) None of the above
  54. Which domestic bank from April 2016 started first-of-its-kind Aadhaar-based ATM usage facility wherein a customer can transact using his biometric details instead of the PIN?
    a) Axis Bank
    b) HDFC Bank
    c) Yes Bank
    d) State Bank of India
    e) DCB Bank
  55. The minimum capital required to start a new Private Sector Bank is Rs. ___ crore.
    a) 100
    b) 200
    c) 500
    d) 300
    e) 400
  56. Which is the latest entity to enter India's mutual fund business as during April 2016 it filed papers with the SEBI for launching at least four mutual fund schemes?
    a) Mahindra Asset Management Company (Mahindra AMC)
    b) Daiwa Asset Management (India) Pvt. Ltd
    c) Deutsche Asset Management (India) Pvt. Ltd.
    d) DSP Black Rock Investment Managers Pvt. Ltd.
    e) Edelweiss Asset Management Ltd.
  57. Capital Local Area Bank (CLAB) is the India's first Small Area Finance Bank (SFB) started its operations in April 2016. In which of the following cities CLAB started its business operations?
    a) Chandigarh
    b) Jaipur
    c) Amritsar
    d) Jalandhar
    e) Ludhiana
  58. The nationalised banks include ___ banks nationalised on 19th July 1969 and ___ banks nationalised on 15th April 1980
    a) 15; 5
    b) 14; 6
    c) 19; 6
    d) 12; 6
    e) 12; 8
  59. PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances like DDs/ TTs/TCs etc if:
    a) The amount exceeds Rs. 10000
    b) The amount exceeds Rs. 50000
    c) The amount of Rs. 50000 and above
    d) No such limit is fixed by the Income Tax authorities
    e) None of the above
  60. To reduce the burden of loan repayment on account of interest, Government has allocated Rs. ___ for interest subvention for 2016-17:
    a) Rs. 10,000 Crore
    b) Rs. 15,000 Crore
    c) Rs. 12,000 Crore
    d) Rs. 20,000 Crore
    e) Rs. 16,000 Crore
  61. Which of following are comes under unusual activities in respect of a customer's accounts?
    a) Opening of account at a place other than the place of work
    b) Frequent deposits of large sums of money bearing labels of other banks into the account
    c) Request for closure of newly opened accounts where high value transactions are already routed through
    d) a and b
    e) a, b and c
  62. Which of the following is not a charge/ security for a bank while sanctioning a Loan?
    a) Pledge
    b) Hypothecation
    c) Banker's Lien
    d) Assignment
    e) Letter of Guarantee
  63. Which of the following is true about National Consumer Disputes Redressal Commission (NCDRC)?
    a) It functions at the national level for the Consumer complaints of the value exceeding Rs. 100 lakhs
    b) It is to hear appeals against the orders of the State Commission only
    c) It's chairman must be either sitting or retired Judge of the Supreme Court of India
    d) a and b
    e) a, b and c
  64. The liability of a minor coparcener in an HUF, for the acts of a Karta is:
    a) Unlimited
    b) Nil
    c) To the extent of his share in the family property
    d) 50% of the loss as per his share
    e) None of the above
  65. Any old bank has to fulfill the following terms and conditions to be included in the second schedule of RBI Act 1934:
    a) It should be either a State Cooperative Bank or a Company defined under Indian Companies Act 1956 or an institution appointed by Central Govt. for undertaking banking operations.
    b) Jointly its paid up capital and reserves should not be less than 5 lakhs.
    c) It has to satisfy RBI that none of its functions, are against depositors interest.
    d) All of the above
    e) None of the above
  66. Interest on Savings Bank Deposit account is calculated on:
    a) Minimum balance during the month
    b) Balance as on 30th of the month
    c) Minimum balance between 10th and last day of the month
    d) Balance on all Fridays
    e) Average daily balances
  67. The New Development Bank (NDB) of BRICS countries approved its first package of loans worth $811 million for four renewable energy projects in four member countries. Out of this $250 million is allotted to India. Which Indian bank became the first bank to receive this loan?
    a) Andhra Bank
    b) Bank of Baroda
    c) Canara Bank
    d) Dena Bank
    e) State Bank of India
  68. For door step banking by banks, RBI has issued directives under which of the following Acts:
    a) RBI Act
    b) Negotiable Instrument Act
    c) Banking Regulation Act
    d) Shops and Establishment Act
    e) Industrial Disputes Act
  69. A bank can purchase NPA from another bank, if in the books of selling bank, the account was NPA for ____:
    a) 2 years
    b) 3 years
    c) 4 years
    d) 5 years
    e) 7 years
  70. The term ARC used in Narasimham Committee Report II stands for:
    a) Asset Restructuring Corporate
    b) Asset Relocation Company
    c) Asset Reconstruction Company
    d) Asset redeployment corporate
    e) None of the above


1) b

2) c

3) d

4) d

5) e

6) d

7) c

8) c

9) c

10) d

11) b

12) c

13) c

14) c

15) d

16) d

17) c

18) c

19) b

20) c

21) b

22) b

23) e

24) d

25) e

26) c

27) c

28) b

29) c

30) d

31) b

32) c

33) d

34) d

35) c

36) c

37) d

38) c

39) e

40) a

41) b

42) d

43) e

44) d

45) c

46) e

47) b

48) d

49) c

50) a

51) e

52) d

53) b

54) e

55) c

56) a

57) d

58) b

59) b

60) b

61) e

62) b

63) e

64) c

65) d

66) e

67) c

68) c

69) a

70) c

Published date : 18 Jun 2016 11:51AM

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