Banking Awareness IBPS Clerk (Mains) Exam 2017
BANKING AWARENESS 1) A NBFC is prohibited to offer or undertake? (A) Accept demand deposits (B) Accept time deposits (C) Lend long term loans (D) Pay a higher rate of interest on deposits as compared to Banks (E) None of the Above 2) The main functions of mutual funds are (A) Collection of funds from a larger of investors (B) Investment of funds so collected in capital markets (C) Holding investment in trust and to diversify the risk in the investment, proper management of portfolio with an object to optimize the returns (D) all of the above 3) To restrict expansion of credit, the Reserve Bank (A) Raises the bank rate (B) Reduces the bank rate (C) Freezes the bank rate (D) None of these (E) all of these 4) The following are main objectives of the SEBI:- (A) To protect interest of investors (B) To promote the development of security market (C) To regulate the security market (D) all of the above 5) What do you mean by money laundering? (A) Washing the currency notes in a good laundery (B) Converting money obtained through illegal sources in to legal money (C) Keeping the money in currency chests (D) Sending excess cash to the other branch 6) What is the full form of MSME? (A) Mini, Small and Medium Enterprises (B) Micro, Small and Medium Enterprises (C) Mini scale Marketing Enterprises (D) Medium Scale Marketing Enterprises 7) What is the main purpose of Open market operations? (A) A fiscal device which assists Government borrowing (B) A monetary measure to regulate quantity of money in circulation and the cash reserves of the commercial banks (C) A measure to counteract extreme trends in business (D) A measure to influence the balance of payments position 8) Bill of Exchange, Promissory Notes and Cheques are defined as (A) Negotiable Instruments (B) Trust Receipts (C) Documents of Title to goods (D) None of the above (E) Stamped Instruments 9) Factoring is (A) A means of financing traders and manufactures by taking over their receivables (B) A means of providing post-shipment finance to exporters (C) A type of agriculture financing (D) None of these
(E) all of these 10) The first public sector bank to issue capital to public is (A) Corporation bank (B)Indian overseas bank (C) Oriental bank of commerce (D)Punjab national bank 11) In India, which among the following is/are a part of Legal Tender Money? (A) Both coins and currency notes (B) Both coins and bank drafts (C) Both currency notes and SDRs (D) Only currency notes issued by RBI 12) In TRIPS, what does I stand for? (A) Intellectual (B) Information (C) Indian (D) Infra 13) Which of the following banks is not wholly owned by the Government of India? (A) Reserve Bank of India (B) State Bank of India (C) Punjab and Sind Bank (D) Central Bank of India 14) Banking Regulation Act, 1949, does not at all apply to (A) Nationalized banks (B) State bank of India and its subsidiaries (C) Foreign banks having branches in India (D) Primary agricultural credit societies and co-operative land mortgage banks 15) When Reserve Bank intends to increase credit by the banking system, it (A) Reduces the bank rate (B) Raises the bank rate (C) Freezes the bank rate (D) None of these (E) All of these 16) What does the term Open Market Operations refer to? (A) Selling of equities in the open market (B) Selling of commodities in the open market (C) Buying and selling of government securities in the open market (D) Buying and selling of products in the wholesale market 17) is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets. (A) Statutory Liquidity Ratio (SLR) (B) Cash Reserve Ratio (CRR) (C) Statutory Reserve Ratio (D) Cash Ratio 18) Which of the following organizations is the Mutual Fund Market regulator? (A) AMFI (B) SEBI (C) CIBIL (D) CRISIL (E) RBI 19) In the term called as AMFI, what do you mean by M? (A) Mutual (B) Money (C) Managing (D) Miscellaneous 20) The liability of the mortgage is gradually reduced in the case of?
(A) Equitable mortgage (B) Legal mortgage (C) Usufructuary mortgage (D) Conditional mortgage 21) These days Banks are offering Loans against Property? Under which business segment, this activity may be categorized? (A) Corporate Banking (B) Personal Banking (C) Merchant Banking (D) Portfolio Management services 22) What do we mean by ECB in financial terms? (A) Essential Commercial Borrowings (B) Essential Credit & Borrowings (C) External Credit & Business (D) External Commercial Borrowings 23) What do you mean by Priority sector? (A) Priority sector means a group of activities which are to be financed on the priority (B) A group of borrowers, from whom, recovery to be made on priority basis (C) A group of peoples, whose accounts to be opened on priority 24) What are the benefits of Core Banking solutions? (A) Benefit of not carrying the cash from one place to another (B) Depositing money anywhere in the country where the bank is present (C) Instant updating of the accounts (D) All of the above (E) none of the above 25) Organised sector refers to (A) Nationalised banks and private sector banks (B) Regional Rural Banks, Cooperative Banks and Development Banks (C) Both 1 and 2 (D) None of the above (E) all of the above 26) Time deposits are payable by the bank (A) on due date (B) on demand (C) after one year (D) after 63 months (E) none of these 27) EXIM bank meets the needs of various groups viz: (A) Indian exporters (B) Overseas entities (C) Commercial banks 28) National housing banks is wholly owned by: (A) RBI (B) Housing development finance corporation LTD. (C) Housing development boards of various states 29) The main objectives of national housing bank are (A) To promote and develop specialized housing finance institutions for mobilization of resources and extending finance for housing activities (B) To extend refinance facilities to housing finance institutions and to scheduled banks
(C) To provide guarantee and underwriting facilities to housing finance institutions 30) When it comes to the regulatory functions of Reserve Bank of India, which among the following is not true? (A) Qualitative credit control (B) Open market operations (C) Maintenance of CRR and SLR (D) Credit authorization scheme (E) Promotion of export through refinance facilities 31) When the requirements of any borrower is very huge, normally banks join together and lend the borrower on sharing basis and this form of finance is called as: (A) Joint financing (B) Coordinated financing (C) Consortium advance (D) Collective finance (E) Cumulative finance 32) The issue of new securities to existing shareholders at ratio to those already held is known as (A) Preference shares (B) Rights shares (C) Bonus shares (D) Cumulative preference shares 33) When it comes to the regulatory functions of Reserve Bank of India, which among the following is not true? (A) Qualitative credit control (B) Open market operations (C) Maintenance of CRR and SLR (D) Credit authorization scheme (E) Promotion of export through refinance facilities 34) Currency Swap is an instrument to manage? (A) Currency Risk (B) Interest Rate Risk (C) Currency and Interest Rate Risk (D) Cash Flows in different currencies (E) All of the above 35) Plastic Money denotes? (A) Bearer cheque (B) Credit card (C) Demand Draft (D) Traveller s cheque (E) Gift cheque 36) RBI has recently introduced Cheque Truncation System, which means that? (A) Physical movement of a cheque is stopped between banks and instead an electronic image be exchanged for clearance of funds (B) The physical movement of a cheque for clearance of funds be made more secure (C) Issue of cheques to customers be made more secure by introducing more enhanced security features (D) A new technology to process payments between Banks exclusively 37) Which of the following is not the part of prudential guidelines issued by Reserve Bank of India? (A) Provisioning (B) Loan recovery rules (C) Asset classification (D) Income recognition 38) Which of the following is not a challenge for the Indian Banking Industry? (A) Improvement in customer services
(B) Implementation of new accounting standards (C) Avoid competition from financial conglomerates (D) Attainment of 100% financial inclusion 39) Which of the following organizations issues guidelines related to Participatory Notes as used in Financial World? (A) IRDA (B) TRAI (C) RBI (D) SEBI 40) On a cheque instead of two parallel lines only bank s name is written. It is a? (A) General crossing (B) No crossing (C) Payable to bearer (D) Special crossing (E) None of the Above 41) Which of the following acts as the Regulators for the Credit Rating Agencies in India? (A) RBI (B) SBI (C) SIDBI (D) SEBI (E) ARCIL 42) What is the full form of CORE in core banking services? (A) Channel of Rupee Exchange (B) Customer Online Realtime Exchange (C) Centralized Online Rupee Exchange (D) Centralized Online Realtime Exchange (E) Customer Online Rupee Exchange. 43) Which of the following is not an instrument of money market? (A) Money funds (B) Share (C) Repurchase agreement (D) Commercial Paper 44) For which of the following reasons RBI has decided to undertake mid-quarter policy reviews? (1) To re-align its policies (2) To take steps and ensure smooth flow of credit (3) To provide guidance to the economy (A) Only (1) (B) Only (2) (C) Only (3) (D) All (1), (2) & (3) 45) In India, National income is estimated by? (A) Planning commission (B) Indian Statistical Institute (C) Central Statistical Organization (D) National Sample Survey Organisation 46) Which of the following is the popular name of the norms by which a bank satisfies itself about the customer s identity and activities? (A) Basel norms (B) KYC norms (C) Service norms (D) Lending norms 47) Today, Banks in addition to normal banking services, offer which of the following services? (A) Internet Banking (B) Depository Services (C) Financial Counselling Services (D) Only (a) and (b) above
(E) All of the above 48) Which is the feature of IBS (Integrated Banking System)? (A) Multi Currency (B) Multi Entity (C) Multi Branch (D) All of the above 49) What does CBS stands for in Banking? (A) Core Banking Solution (B) Central Banking System (C) Currency Bank Software (D) Centralized Banking Software 50) Electronic Fund Transfer scheme of RBI has been renamed as: (A) Clearing (B) Core Banking Solutions (C) Real Time Gross Settlement (D) National Electronic Fund Transfer (E) All of the above