BANKING AWARENESS MCQ FOR GIC/RBI/RRB-2/ IBPS PO-3/CLERK-3/SBI CLERK SET-01

1. Banks in our country normally publicize that additional interest rate is allowed on retail domestic term deposits of?(a) Minors (b) Married Women(c) Senior citizens ((d) Government Employees (e) Rural residents
2. When the rate of inflation increases?(a) Purchasing power of money increases (b) Purchasing power of money decreases (c) Value of money increases((d) Purchasing power of money remains unaffected(e) Amount of money in circulation decreases
3. A centralized database with online connectivity to branches, internet as well as ATM-network which has been adopted by almost all major banks of our country is known as?(a) Investment Banking (b) Core Banking 
(c) Mobile Banking((d) National Banking (e) Specialized Banking
4. Which of the following is NOT considered a money market instrument?(a) Treasury Bills (b) Repurchase Agreement 

(c) Commercial Paper ((d) Certificate of Deposit (e) Shares and Bonds
5. Which of the following is necessary while opening deposit accounts in banks?(a) Will (b)Registration (c)Nomination 

(d) Indemnity (e) Guarantee
6. Which of the following is not a banking term? (a) Letter of credit (b) MIBOR (c) Factoring services ((d) Entry load 

(e) None of these 
7. Which of the following organizations issue the rules of global trade? (a) IMF (b) World Trade Organization (c) Foreign trade (d) G-20 (e) None 
8. One single statement that depicts the financial position of a Bank and / or Business enterprise at a given point of time is called: (a) Statement of product details (b) Foreign exchange(c) Balance Sheet ((d) Balance of payment (e) Trading and Manufacturing account 
9. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of society? (a) Persons below 60 yrs (b) Senior Citizens (c) Unemployed youth ((d) Orphans (e) All
10. One of the major challenges banking industry is facing these days is curbing deliberate efforts of some people to bring money earned through illegal activities in circulation. Which of the following act is passed to prevent this activity? (a) Payment & settlements Act (b) Control money supply Act (c) Narcotics and Psychotropic substance Act ((d) Prevention of Money laundering Act(e) None
11. Which of the following scheme is not meant for investment purposes?(a) National saving certificate (b) Infrastructure bonds (c) Mutual funds ((d) Letter of credit (e) None of these 
12. Basel norms which are important regulatory stipulations are meant for which sector? (a) Insurance (b) Banking (c) Micro finance ((d) Pension funds (e) None 
13. Systematic investment Plans relates to:(a) Mutual Funds (b) Life Insurance Companies (c) Commercial Banks (d) Post office savings schemes (e) None
14. Euro money is the official currency of?(a) NATO (b) UN (c) European ((d) Germany and England (e) None of these 
15. Which of the following is an example of cash less purchase? (a) Debit card (b) Credit card (c) ATM withdrawal (d) All of the above (e) None
16. Whose signature appears on Indian Rs. 100 note? (a) Finance Minister (b) RBI Governor (c) Finance Secretary 

(d) Chairman, Planning Commission (e) None 
17. While discussing investments there is a mention of short term government security. What is this investment? (a) Debenture (b) Mutual funds (c) Treasury bill ((d) Share (e) None of these 
18. NBFCs are an important part of the Indian financial system. what is meant by this term? (a) New Banking Financial Companies (b) Non Banking Financial Companies (c) Neo Banking Financial Confederation (d) Non banking Fiscal Companies
19. Banking loan against property requires the asset to be free from encumbrances. What does it mean? (a) The asset to be free from any liability (b) The asset to be properly registered (c) The property to be fully constructed (d) The asset should not have multiple owners (e) None 
20. RBI stipulates a healthy mix of CASA in the business figures of banks. What is CASA? (a) Customer Analysis and Savings Pattern (b) Cost Appreciation and selling Analysis (c) Current Account and saving Account (d) Credit and savings Aggregate (e) None of these 
21. Which one of the following is not an electronic banking delivery channel?(a) Mobile Vans((d) Mobile Phone Banking (c) Internet Banking (d) Tele Banking  (e) ATM
22. The Rate at which the domestic currency can be converted into foreign currency and vice-versa is known as the ____

(a) Exchange rate (b) MIBOR (c) Inter bank Call money rate ((d) Base rate (e) LIBOR
23. Now-a-days Banks are selling third party products. Example of third party product is:(a) Mutual funds (b) Term deposits(c) Credit cards ((d) All of these (e) None 
24. Electronic Clearing Service in banks can be availed only by:(a) Individuals (b) Corporates (c) Senior Citizens (d) All of these (e) None
25. Indian Commercial Banks are categorized into: (a) Public sector Banks (b)Foreign Banks (c) Private Sector Banks (d) All of the above (e) None 
26. Regional Rural Banks have been set up with the basic objectives of:(a) Providing credit to semi - urban & urban population (b) Providing deposits facilities to farmers  (c) Providing credit & deposit facilities to rural areas (d) providing credit, deposit and other banking facilities to people in rural areas (e) None
27. _____ is raised in capital markets (a) Funds through long term securities(b) Long term loans through Govt. securities (c) medium term loans (d) Short - term instruments(e) None
28. Interest on Government secu-rities on fixed basis is known as: (a) Bank rate (b) Coupon (c) Prime Lending Rate (d) Bench mark PLR (e) None
29. __ was not nationalized in 1969: (a) Punjab National Bank(b) Oriental Bank of commerce (c) Bank of Baroda (d) Union Bank of India (e) None
30. In the first round 14 major banks with a liability base of ____ were nationalized: (a) 10 crore or more 
(b) 20 crore or more (c) 50 crore or more (d) 100 crore or more (e) None
31. _____ do not attract TDS: (a) Fixed deposits (b) Reinvestment deposits(c) NRO SB (d) NRO FDR (e) Recurring deposits 
32. SLR is maintained as a percentage of:(a) Time liabilities (b) Demand liabilities(c) Time and Demand liabilities (d) Gross time and demand liabilities  (e) Net demand and time Liabilities 
33. The maximum Statutory Liquidity Ratio to be maintained by banks is_____: (a) 25% (b) 30% (c) 35% 
(d) 40% (e) None
34. CRR funds are kept by the Banks in ____: (a) Cash in hand at branches (b) Balance with other banks 
(c) Balance in a special Account with RBI (d) Funds in the currency chest (e) None
35. An increase in CRR by RBI leads to: (a) Decrease in deposit (b) increase in deposit (c) Increase in lendable resources (d) Decrease in lendable resources (e) None
36. When RBI reduce the CRR it results into: (a) Decrease in deposit (b) increase in deposit (c) Increase in lendable resources (d) Decrease in lendable resources (e) None
37. What is meant by development Oriented banking? (a) Infrastructure financing (b) Extending loans to States, which are undevelopment (c) Taking up the task of develo-pment of the economy by providing support to under privileged sections of the society (d) All the above (e) None
38. Principal functions of SIDBI: (a) Promotion of SSI (b) Finance of SSI (c) Development of SSI(d) All the above (e) None 
39. ____ heads and conducts the affairs of RBI: (a) Central Board (b) local board (c) Regional board (d) All of the above (e) None
40. RBI Provides ____ for meeting day - to - day receipt and expenditure mismatch to both Central and State Governments. (a) treasury bills (b) Ways and Means advance (c) date and securities (d) All the above (e) None

Answers:-  (1) c (2) b (3) b (4) e (5) c (6) d (7) b (8) c (9) b (10) d (11) d (12) b (13) a (14) c (15) d (16) b (17) c (18) b (19) a (20) c (21) a (22) a (23) a (24) d (25) d (26) d (27) a (28) b (29) b (30) c (31) e (32) e (33) d (34) c (35) d (36) c (37) c (38) d (39) a (40) b