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Banking Awareness Model Questions - 2

  1. What is "Special Crossing"?
    a) Not negotiable words in two parallel lines
    b) Account Payee words in two parallel lines
    c) & Co. words in two parallel lines
    d) Any bank's name with or without two parallel lines
    e) None of the above
  2. As per the Union Budget 2016-17, how many hectares of land will be brought under irrigation under the Pradhan Mantri Krishi Sinchai Yojana?
    a) 28.5 lakh hectares
    b) 30.5 lakh hectares
    c) 25.8 lakh hectares
    d) 15.6 lakh hectares
    e) 14.5 lakh hectares
  3. 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 Co-operated Bank or a Company defined under Indian Companies Act 1956 or an institution appointed by Central Govt. for undertaking banking operations
    b) Its paid up capital and reserves should not be less than 5 lakh
    c) It has to satisfy RBI that none of its functions are against depositors interest
    d) Only c
    e) a, b and c
  4. To make dairying more remunerative to the farmers, following new projects will be taken up as per provisions of Budget 2016-17:
    a) Pashudhan Sanjivani
    b) Nakul Swasthya Patra
    c) Creation of E-Pashudhan Haat
    d) A National Genomic Centre for Indigenous breeds
    e) All of the above
  5. Bank does not recognize Trusts. What does it mean?
    a) Bank opens trust accounts at these risks of trustless
    b) In absence of specific information, deposit accounts will be presumed to be the property of the account holder
    c) Bank can open trust accounts only for a specific transaction of the trust
    d) Bank does not open accounts of private trusts unless they are registered
    e) None of the above
  6. Which of the following statement is incorrect as regards Banking Ombudsman?
    a) Banking Ombudsman is appointed by RBI
    b) GM or CGM of RBI will be appointed as Banking Ombudsman
    c) The main function of Ombudsman is to address the deficiencies in Bank Industry
    d) Banking Ombudsman will deal with credit card transactions up to Rs 1.00 lakh only
    e) In case the parties are not satisfied with the Award given by Banking Ombudsman they can appeal to Governor, Reserve Bank of India
  7. In Banking parlance the term "allonge" refers to:
    a) A plain sheet appended to a negotiable instrument for the purpose of making endorsement thereon
    b) Conditional endorsement of a negotiable instrument
    c) A plain sheet appended to a will
    d) Enclosures to the balance sheet of the bank
    e) None of the above
  8. In term loans the account becomes NPA when:
    a) Principal has remained past due for 3 months wef March 31, 2004
    b) Interest, principal or other charges, remain unpaid for three months (3 installments)
    c) Interest and principal have fallen due and paid after more than 90 days
    d) Any of the above whichever is earlier
    e) None of the above
  9. The Stand up India Scheme proposes to facilitate at least ___ projects per bank branch, to promote entrepreneurship among the target group, as per provisions of central Govt. Budget for 2016-17:
    a) One
    b) Two
    c) Three
    d) Four
    e) Five
  10. The Securities and Exchange Board of India (SEBI) has constituted a Committee for disposing of the land purchased by PACL Ltd. in order to refund people who have invested in the company's various funds for purchase of land. Who was appointed the head of this committee?
    a) Atulesh Jindal
    b) Justice R.M. Lodha
    c) Malay Mukherjee
    d) Anshuman Das
    e) D.K.Sararraf
  11. What is the amount of loan which can be extended against the security of a certificate of deposit?
    a) 25%
    b) 50%
    c) 75%
    d) No loan can be allowed
    e) None of the above
  12. Mr. P who is a payee of an order cheque endorses the cheques by putting his signature without adding any word. What is such endorsement called?
    a) Restrictive endorsement
    b) Endorsement in blank
    c) Conditional endorsement
    d) Endorsement in full
    e) None of the above
  13. The Pradhan Mantri Mudra Yojana (PMMY) was launched for the benefit of bottom of the pyramid entrepreneurs. Banks and NBFC-MFIs are to achieve the target of amount sanctioned at ______ in 2016-17:
    a) Rs. 1,80,000 crore
    b) Rs. 1,50,000 crore
    c) Rs. 1,70,000 crore
    d) Rs. 2,00,000 crore
    e) Rs. 1,00,000 crore
  14. Which of the following is not defined in the Negotiable Instrument Act and is used as a custom and practice in bank industry?
    a) General Crossing
    b) Special Crossing
    c) Not Negotiable Crossing
    d) Account Payee Crossing
    e) None of the above
  15. "Gyan Sangam" is the name given to the annual conclave of the top officials from banks, Finance Ministry and the Reserve Bank of India (RBI) to take stock of the developments in the banking sector and brainstorm on the issues that bog down stakeholders at various fronts. At which of the following places the said Gyan Sangam of 2016 held?
    a) Andhra Pradesh
    b) Baroda
    c) Gurgaon
    d) Chandigarh
    e) New Delhi
  16. A garnishee order received from a court by a Bank is applicable to:
    a) Demand deposits
    b) Time deposits subject to maturity
    c) Recurring Deposit
    d) a, b and c
    e) b and c
  17. When a banker is acting on the standing instructions of a customer, their relationship is of:
    a) An employer and an employee
    b) An owner and a servant
    c) A trustee and beneficiary
    d) A principal and an agent
    e) Agent and principal
  18. The methodology that focuses on eliminating the defects and facilitating data driven decision making:
    a) Management by objectives
    b) Customer relation management
    c) Six sigma
    d) Strategic management
    e) Total quality management
  19. Break-Even Point is a point:
    a) Where total costs equal total revenues
    b) Of maximum sales that would be possible
    c) Of minimum sales that would be possible
    d) Of highest profit that would be possible
    e) When the unit would starts repaying Banks term loan
  20. Which of the following countries are approved for the first set of loans totalling US 509 million dollars by The China-led Asian Infrastructure Investment Bank (AIIB) to finance projects?
    a) Bangladesh
    b) Pakistan
    c) Indonesia
    d) Tajikistan
    e) All of the above
  21. The cheque Truncation System is not applicable to ____.
    a) High value clearing of cheques
    b) Local cheques
    c) Intercity cheques
    d) Cheques drawn on the same banks
    e) None of the above
  22. In the Budget 2016-17, __% FDI in Asset Reconstruction Companies(ARCs) is proposed to be permitted through automatic route:
    a) 49%
    b) 51%
    c) 80%
    d) 100%
    e) 74%
  23. Regional Rural Banks are required to maintain CRR@ ___ % of NDTL.
    a) 3
    b) 4.5
    c) 5
    d) 6
    e) Same as other schedule banks
  24. Which of the following is the description of a Fixed Deposit Receipt?
    a) A Negotiable Instrument
    b) A document of Title to Goods
    c) A transferable Instrument
    d) An undertaking to indemnity
    e) A Not Negotiable and not transferable instrument
  25. As per Section 24 of RBI Act, RBI can issue notes of maximum denomination of Rs. ____.
    a) 1000
    b) 2000
    c) 5000
    d) 10000
    e) 50000
  26. A and B maintain an FD account with a locker and want to make single nomination for both the accounts:
    a) Nomination can be made in both the accounts separately
    b) Nomination cannot be allowed in lockers in joint names
    c) It will depend on bank's discretion
    d) Nomination can be accepted
    e) None of the above
  27. Cash kept in Currency Chest is owned by:
    a) Currency Chest branch
    b) Head office of the bank
    c) State Bank of India
    d) Reserve Bank of India
    e) Central Government
  28. Which among the following is not correct in connection with the Lok Adalats?
    a) Proceedings before Lok Adalat are deemed to be judicial proceedings under Civil Procedure Code
    b) Lok Adalat has power to summon and enforce attendance of witnesses
    c) Lok Adalat have the same powers which are vested in a civil court under the Code of Civil Procedure
    d) Lok Adalats can entertain cases up to Rs. 20.00 lakhs
    e) Lok Adalats can entertain cases even beyond Rs. 20.00 lakhs also
  29. As per the RBI directives all payments of Rs. __ and above is bound to be made in electronic mode.
    a) 10 lakh
    b) 20 lakh
    c) 50 lakh
    d) 100 lakh
    e) 2 crore
  30. Which of the following is the basis function of Banks?
    a) Merchant Banking Business
    b) Issuing Demand Drafts
    c) Issuing Mail Transfers
    d) Accepting Deposits and giving loans
    e) Paying LIC Premium on behalf of customers


1) d

2) a

3) e

4) e

5) b

6) e

7) a

8) b

9) b

10) b

11) d

12) b

13) a

14) d

15) c

16) d

17) e

18) c

19) a

20) e

21) d

22) d

23) e

24) e

25) d

26) a

27) d

28) e

29) a

30) d

Published date : 01 Jul 2016 02:45PM

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