1500+ Banking Awareness Solved MCQs

1.

Banking Ombudsman Scheme is applicable to the business of .

A. All scheduled commercial banks excluding RRBs
B. All scheduled commercial banks including RRBs
C. Only Public Sector Banks
D. Only Private Sector Banks
E. All scheduled banks except private banks
Answer» B. All scheduled commercial banks including RRBs
2.

Which of the following functions are not being performed by the Reserve Bank of India?

A. Regulation of Banks in India
B. Regulation of Foreign Direct Investment inIndia
C. Foreign Currency Management in India
D. Currency Management in India
E. Control and Supervision of Money Supply
Answer» B. Regulation of Foreign Direct Investment inIndia
3.

A bank is called as ―Scheduled Bank‖ when .

A. Its business has crossed Rs. 1000 crore mark
B. Its branch network is over 100
C. It is included in the second Schedule of the RBI Act
D. When it complies with all the three above
E. None of these
Answer» C. It is included in the second Schedule of the RBI Act
4.

Which of the following organization/agencies has sought an emergency fund of Rs. 1000 crore from banks to tackle acute liquidity crisis, which is coming in the way to give loans to micro borrowers?

A. Micro Finance Institutions
B. Regional Rural & Cooperative Banks
C. RBI
D. NABARD
E. None of these
Answer» D. NABARD
5.

What is the upper limit prescribed for RTGS transaction?

A. Rs. 5 lacs
B. Rs. 1 lacs
C. Rs. 25 lacs
D. Rs. 50 lacs
E. No upper limits is prescribed
Answer» E. No upper limits is prescribed
6.

Distribution of insurance products and insurance policies by banks as corporate agents is known as .

A. General Insurance
B. Non-life Insurance
C. Bancassurance
D. Insurance Banking
E. Deposit Insurance
Answer» C. Bancassurance
7.

Which of the following committees/ Task Forces was set up to suggest reforms in Banking Sector?

A. Swaminathan Committee
B. Narasimham Committee
C. Rajinder Sachar Committee
D. Task Force on Infrastructure
E. None of these
Answer» B. Narasimham Committee
8.

FINO stands for .

A. Financial Investment Network and Operations
B. Farmers Investment in National Organization
C. Farmers Inclusion News and Operations
D. Financial Inclusion Network and Operations
E. None of these
Answer» D. Financial Inclusion Network and Operations
9.

When the rate of inflation increases .

A. Value of money increases
B. Purchasing power of money decreases
C. Purchase power of money increases
D. Purchasing power of money remains unaffected
E. Amount of money in circulation decreases
Answer» B. Purchasing power of money decreases
10.

Which of the following is the main advantage ―ASBA‖ with the applicants for share allotment?

A. ASBA applicant has got certain preference in allotment of shares as compared to general applicants
B. ASBA applicants need not remit the fund for allotment of shares, he/she will do shares are allotment to him/her
C. ASBA applicant has got secured allotment of shares
D. ASBA applicants deposit/OD account is debited, only the funds are blocked for same and he/she continues to avail interest till the shares are allotted to him/her.
E. None of these
Answer» D. ASBA applicants deposit/OD account is debited, only the funds are blocked for same and he/she continues to avail interest till the shares are allotted to him/her.
11.

Interest on saving bank account is now calculated by banks on .

A. Minimum balance during the month
B. Minimum balance from 7th to last day of the month
C. Minimum balance from 10th to last day of the month
D. Maximum balance during the month
E. Daily product basis
Answer» E. Daily product basis
12.

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
Answer» B. Core banking
13.

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
Answer» E. Shares and bonds
14.

Which of the following is not a part of the scheduled banking structure in India?

A. State Co-operative Banks
B. Public Sector Banks
C. Private Sector Banks
D. Regional Rural Banks
E. Money Lenders
Answer» E. Money Lenders
15.

Which of the following terms is used in the field of finance and banking?

A. Guage Pressure
B. Quantum number
C. Adjustment Credit
D. Absolute Zero
E. Single bond
Answer» C. Adjustment Credit
16.

Goods and Services Tax (GST), would replace which of the following taxes level at present?

A. Income tax
B. Corporate tax
C. Capital gains tax
D. Value-added tax (VAT)
E. All of these
Answer» D. Value-added tax (VAT)
17.

Normally Banks accepts Fixed Deposits for a maximum period of .

A. 5 years
B. 3 years
C. 7 years
D. 20 years
E. 10 years
Answer» E. 10 years
18.

IFRS stands for .

A. International Financial Reporting Standards
B. Indian Financial Rating Standards
C. International Financial Rating Standards
D. Indian Functional Reporting Standards
E. None of these
Answer» A. International Financial Reporting Standards
19.

KYC guidelines followed by the Banks have been framed on the recommendations the .

A. Ministry of Home Affairs
B. Ministry of Rural Development
C. Indian Banks Association
D. Financial Intelligence Unit
E. Reserve Bank of India
Answer» E. Reserve Bank of India
20.

Short-term assets, representing amounts due to a vendor or suppliers of goods or services that were sold on credit terms is known as .

A. Account Receivable
B. Fixed Asset
C. Deposit Asset
D. Current Liabilities
E. None of these
Answer» A. Account Receivable
21.

What is the rate at which commercial banks charge on their surplus funds with RBI?

A. SLR
B. Reverse Repo Rate
C. Repo Rate
D. Cash Reverse Ratio
E. Bank Rate
Answer» B. Reverse Repo Rate
22.

is the rate at which commercial bank needs to maintain in the form of cash, or gold or government approved securities (Bonds) before providing credit to its customers.

A. Reverse Repo Rate
B. Repo Rate
C. CRR Rate
D. SLR Rate
E. None of these
Answer» D. SLR Rate
23.

Who appoints the governor of Reserve Bank of India?

A. Financial Secretary
B. Financial Ministry
C. Central Government
D. President of India
E. None of these
Answer» C. Central Government
24.

In India, the Chit funds are governed / regulated by .

A. Local Bodies
B. RBI
C. Central Government
D. State Government
E. None of these
Answer» D. State Government
25.

CAG Stands for .

A. Controller and Auditor General of India
B. Constant and Author General of India
C. Constant Auditor General of India
D. Central Auditor General of India
E. None of these
Answer» A. Controller and Auditor General of India
26.

CPI stands for .

A. Cost Price Index
B. Current Price Index
C. Consumer Price Index
D. Cash Price Index
E. None of these
Answer» C. Consumer Price Index
27.

SEBI is a .

A. Non-Advisory body
B. Statutory body
C. Advisory body
D. Constitutional body
E. Non- Statutory body
Answer» B. Statutory body
28.

At which rate the RBI lends money to a public sector bank on a long term basis?

A. Bank Rate
B. CRR
C. Repo Rate
D. PLR
E. Reverse Repo Rate
Answer» A. Bank Rate
29.

What is the full form of PPP?

A. Personal Private Power
B. Primary Power Parity
C. Personal Private Parity
D. Purchasing Power Parity
E. None of these
Answer» D. Purchasing Power Parity
30.

What is the Minimum amount of transfer required for RTGS is .

A. Rs. 1 lakh
B. Rs. 2 lakh
C. Rs. 5 lakh
D. Rs. 50,000
E. No Limits
Answer» B. Rs. 2 lakh
31.

Who is the sole authority to issue and manage currency in India?

A. State Bank of India
B. Government of India
C. Reserve Bank of India
D. Finance Ministry
E. None of these
Answer» C. Reserve Bank of India
32.

In CRR, C stands for .

A. Cash
B. Currency
C. Core
D. Currency
E. None of these
Answer» A. Cash
33.

MICR code is used for .

A. For Code Banking Solution
B. For Electronic Funds Transfer
C. For Electronic Clearance of Cheques
D. For Cheque Truncation Services
E. None of these
Answer» C. For Electronic Clearance of Cheques
34.

The Statutory Liquidity Ratio (SLR), the amount of liquid assets such as cash, precious metals

A. 6 months
B. 3 months
C. 2 months
D. 1 month
E. 1 year
Answer» D. 1 month
35.

Money lent for more than one day but less than 15 days in the money market is known as .

A. Notice Money
B. Call Money
C. Term Money
D. Week Money
E. None of these
Answer» A. Notice Money
36.

Smart Money‘ is a term used for .

A. Internet Banking
B. Credit Card
C. Mobile Apps
D. Demand Drafts of Banks
E. None of these
Answer» B. Credit Card
37.

The Indian Financial System Code (IFS Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the two main Electronic Funds Settlement Systems in India. IFSC code consists of how many alphanumeric codes?

A. 10
B. 11
C. 9
D. 12
E. 8
Answer» B. 11
38.

Which among the following committee constituted on Payment Banks license?

A. Dr. Nachiket Mor
B. Deepak Mohanty
C. A C Shan
D. B D Thakar
E. None of these
Answer» A. Dr. Nachiket Mor
39.

SARFAESI Act 2002 related to .

A. Acquisition of small banks
B. Fixation of interest rates
C. Recovery of bad loans
D. Regulation of foreign exchange
E. None of these
Answer» C. Recovery of bad loans
40.

NDTL stands for .

A. Net Demand and Term Liability
B. Net Demand and Time Liquidity
C. Net Demand and Trade Liquidity
D. Net Demand and Time Liability
E. None of these
Answer» D. Net Demand and Time Liability
41.

Magnetic Ink Character Recognition (MICR) is a 9 digits code is used mainly by the banking industry to ease the processing and clearance of cheques and other documents. The first three digits represent the .

A. Bank
B. City
C. State
D. Branch
E. None of these
Answer» B. City
42.

A savings as well as current account should be treated as inoperative / inactive if there are no transactions in the account for over a period of            years.

A. 5
B. 3
C. 1
D. 2
E. 4
Answer» D. 2
43.

In CDR, ―R‖ stands for .

A. Regulation
B. Reserve
C. Restructuring
D. Ratio
E. Reduce
Answer» C. Restructuring
44.

If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority to .

A. Governor of RBI
B. Deputy Governor of the RBI
C. Finance Secretary
D. Finance Minister
E. GM of the Concern Bank
Answer» B. Deputy Governor of the RBI
45.

Headquarters of National Investment and Infrastructure Fund (NIIF) is located at .

A. New Delhi
B. Hyderabad
C. Mumbai
D. Kolkata
E. Bangalore
Answer» C. Mumbai
46.

According to the proposal on PSL, what sub target is to be created for Micro Enterprises in India by March 2017?

A. 7 %
B. 7.5 %
C. 8 %
D. 8.5 %
E. None of the above
Answer» B. 7.5 %
47.

What is ―Stagflation‖?

A. inflation with growth
B. deflation with growth
C. inflation after deflations
D. inflation with depression
E. None of the above
Answer» C. inflation after deflations
48.

Which bank has become the first private sector bank to sell Indian gold coins?

A. Dhanlaxmi Bank
B. Federal Bank
C. ICICI Bank
D. IndusInd Bank
E. Karur Vysya Bank
Answer» B. Federal Bank
49.

Which of the following can issue commercial paper for raising short term funds?

A. Corporate
B. Primary Dealers
C. All-India Financial Institutions
D. Both (B) and (C)
E. All of the Above
Answer» E. All of the Above
50.

Section 80E of the Income Tax Act provides for deduction of interest paid on Education or study loan taken for higher education. Deduction under section 80E is available for            

A. 2 years
B. 4 years
C. 8 years
D. 10 years
E. None of these
Answer» C. 8 years
51.

What is the full form of FCCB?

A. Foreign Currency convertible Bond
B. Foreign Currency credit Bond
C. Financial Consortium and Credit Bureau
D. Future Credit and Currency Bureau
E. None of the Above
Answer» A. Foreign Currency convertible Bond
52.

Which of the following institutions is responsible for the supervision of RRBs?

A. RBI
B. SEBI
C. NABARD
D. GOI
E. Both (a) and (c)
Answer» E. Both (a) and (c)
53.

RBS Bank has been headquartered in

A. Glasgow, United Kingdom
B. Edinburgh, United Kingdom
C. Skye, United Kingdom
D. Aberdeen, United Kingdom
E. None of these
Answer» B. Edinburgh, United Kingdom
54.

National Housing Bank (NHB), a wholly owned subsidiary of                    

A. RBI
B. Government Of India
C. IRDAI
D. State Government
E. None of these
Answer» A. RBI
55.

In India Mutual Funds are regulated by                 .

A. Securities and Exchange Board of India
B. Reserve Bank of India
C. State Bank of India
D. Small Industrial Development Bank of India
E. None of these
Answer» A. Securities and Exchange Board of India
56.

KYC Compliance is done to .

A. Identify a person
B. To know the address of a person
C. To ensure the genuineness the person‟s identity as mentioned in the application and to verify the correctness of address
D. Concern state government
E. None of these
Answer» C. To ensure the genuineness the person‟s identity as mentioned in the application and to verify the correctness of address
57.

MICR stands for .

A. Magnetic Ink Character Recognition
B. Maximum Individual Cancer Risk
C. Michigan Incident Crime Reporting
D. Magnetic Ink Check Reader
E. None of these
Answer» A. Magnetic Ink Character Recognition
58.

Open Money Market is a place for selling and buying of financial instrument by .

A. All financial institutions
B. Only by Commercial Banks
C. Only by Common Banks
D. Indian Government
E. None of the above
Answer» A. All financial institutions
59.

Which of the following is the first commercial bank to launch mutual fund?

A. State Bank of India
B. Canara Bank
C. PNB
D. Bank of India
E. None of these
Answer» A. State Bank of India
60.

Who can invest in a commercial paper?

A. Individuals
B. Banking Companies
C. Corporate bodies registered or incorporated in India and unincorporated bodies, Non- Resident Indians (NRIs) and Foreign Institutional Investors (FIIs)
D. All of the above
E. None of these
Answer» D. All of the above
61.

The committee on Banking Regulations and Supervisory Practices which released the agreed frame work on international convergence of capital measures and capital standards in July 1988 is popularly known as .

A. Vaz Committee
B. Cooks Committee
C. Basel Committee
D. Rao Committee
E. None of these
Answer» C. Basel Committee
62.

Which is the first Public Sector Bank to issue capital to public?

A. Indian Overseas Bank
B. Syndicate Bank
C. Oriental Bank of Commerce
D. Punjab National Bank
E. None of these
Answer» C. Oriental Bank of Commerce
63.

Which of the following rates is not decided by the RBI?

A. Bank Rate
B. Repo Rate
C. Reverse Repo Rate
D. Prime Lending Rate
E. None of these
Answer» D. Prime Lending Rate
64.

Which of following is NOT a function of the Reserve Bank of India?

A. Fiscal Policy Functions
B. Exchange Control Functions
C. Issuance, Exchange and destruction of currency notes
D. Monetary Authority Functions
E. Supervisory and Control Functions
Answer» A. Fiscal Policy Functions
65.

With a view to facilitate payment of balance in the deposit account to the person named by the depositor without any hassles in the event of death of the account holder, the following facility was introduced for bank accounts in our country             

A. Will
B. Registration
C. Nomination
D. Indemnity
E. Guarantee
Answer» C. Nomination
66.

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. Govt. employees
E. Rural residents
Answer» C. Senior citizens
67.

On which one of the following issues IMF has supported monetary policy of India?

A. Introduction of GST.
B. Stimulus for agriculture sector
C. Concessions for foreign investment
D. Tightening of monetary policy
E. None of these
Answer» D. Tightening of monetary policy
68.

In the term STRIPS, the first letter ―S‟ denotes

A. Single
B. Small
C. Special
D. Savings
E. Separate
Answer» E. Separate
69.

When the loan is granted for purchase of white goods it is called .

A. Consumption loan
B. White goods loan
C. Consumer durable loan
D. Business loan
E. Proprietary loan
Answer» C. Consumer durable loan
70.

Structure of Basel II is based on how many pillars?

A. Two
B. Ten
C. Four
D. Five
E. Three
Answer» E. Three
71.

Which of the following organization / agencies has established a fund known as Investor Protection Fund?

A. RBI
B. SIDBI
C. Bombay Stock Exchange
D. Ministry of Finance
E. Ministry of Commerce & Industry
Answer» C. Bombay Stock Exchange
72.

The CRR and SLR maintenance is on the

A. NDTL
B. DTL
C. Total Deposits
D. CASA
E. None of these
Answer» A. NDTL
73.

Which of the following is the most liquid money?

A. M1
B. M2
C. Securities
D. M3
E. Call Money
Answer» A. M1
74.

Who decides the value and volume of bank notes to be printed and on what basis?

A. Finance Ministry
B. Planning Commission
C. RBI
D. Stock Exchange
E. None of these
Answer» C. RBI
75.

The largest number of commercial banks offices are located in? 84). What is the purpose of KYC in banking?

A. It is used for customer identification
B. It is used for increasing the CRR of banks
C. It is used against money laundering
D. It is used by the central bank to control liquidity
E. Both (a) and (c)
Answer» E. Both (a) and (c)
76.

Which of the following is not a member of the World Bank Group?

A. International Bank of Reconstruction and Development
B. International Development Association
C. Bank of International Settlement
D. International Finance Corporation
E. None of these
Answer» C. Bank of International Settlement
77.

Which of the following types of cards is free from credit risk?

A. Credit card
B. Debit card
C. Prepaid cards
D. Charge cards
E. Both (c) and (d)
Answer» B. Debit card
78.

Pledge means?

A. advance against goods
B. open working capital limits
C. bailment of goods as security for payment of a debt or performance of a promise
D. all of the above
E. none of these
Answer» C. bailment of goods as security for payment of a debt or performance of a promise
79.

Inflation refers to a fall in the value of money. Which of the following is the key measure of inflation in india?

A. Consumer price index
B. Wholesale price index
C. Personal consumption expenditures price index
D. GDP Deflator
E. All of the above
Answer» B. Wholesale price index
80.

A financial contract that derives its value from another asset or an index of asset values in known as                           

A. Insurance policy
B. Security
C. Derivative
D. Share
E. None of the above
Answer» C. Derivative
81.

Which of the following co-operative banks is considered as the first Co-operative Bank in India?

A. Amanath Co-operative Bank Ltd
B. Anyonya Co-operative Bank
C. Greater Bombay Co-operative Bank Ltd
D. Abhyudaya Co-operative Bank Ltd
E. None of these
Answer» B. Anyonya Co-operative Bank
82.

In India Agricultural Co-operative Banks was started at .

A. 1929
B. 1950
C. 1904
D. 1980
E. 1975
Answer» C. 1904
83.

According to the Sarraya Committee, average membership of the society‟s is .

A. 19
B. 48
C. 25
D. 32
E. 45
Answer» D. 32
84.

Monetary Policy as an arm of the economic policy is administered by .

A. Prime Minister of India
B. Government of India
C. State Bank of India
D. Reserve Bank of India
E. None of these
Answer» D. Reserve Bank of India
85.

Co-Operative Development Bank was set up by .

A. NABARD
B. RBI
C. SBI
D. Central Government
E. State Government
Answer» A. NABARD
86.

Co-Operative Banks in India do not finance rural areas under .

A. Personal Finance
B. Small Scale Unit
C. Farming
D. Cattle
E. None of these
Answer» B. Small Scale Unit
87.

Co-Operative Bank in India has a .

A. Four tier system
B. Two tier system
C. Three tier system
D. Five tier system
E. Six tier system
Answer» C. Three tier system
88.

RBI known as lender of last restore because:

A. It has to meet the credit need to citizens to whom no one else is willing to lend
B. Banks lend to go to RBI as a last restore
C. It comes to help banks in times of crisis
D. All of the above
E. None of these
Answer» C. It comes to help banks in times of crisis
89.

The seed capital of Bharatiya Mahila Bank is

A. Rs.5000 crore
B. Rs.1000 crore
C. Rs.500 crore
D. Rs.100 crore
E. None of the above
Answer» B. Rs.1000 crore
90.

Which is incorrect with regard to powers of RBI:

A. Holds cash reserve banks
B. Controls banking system through licensing
C. Supervises Banking system through inspection
D. None of the above
E. All of the above
Answer» D. None of the above
91.

Which of the following is an investment advisory discipline?

A. Corporate Industrial Finance
B. Offshare Banking
C. Wholesale Banking
D. Wealth Management
E. Trade Finance
Answer» D. Wealth Management
92.

When banks accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as:

A. Term Deposit
B. Demand Deposit
C. Bond
D. Mortgage
E. Advance
Answer» A. Term Deposit
93.

When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called                      

A. Revenue Deficit
B. Budgetary Deficit
C. Zero Budgeting
D. Trade Gap
E. Balance of Payment Problem
Answer» B. Budgetary Deficit
94.

Which of the following is not the name of a bank functioning in India?

A. Central Bank of India
B. UCO Bank
C. Aegon Religare
D. Dena Bank
E. ICICI Bank
Answer» C. Aegon Religare
95.

Lack of access to financial services is technically known as              

A. Financial Instability
B. Financial Stability
C. Financial Inclusion
D. Financial Exclusion
E. Poverty
Answer» D. Financial Exclusion
96.

Which of the following can be categories as a Merchant Banking service?

A. Consultancy on finance to a company
B. Advance in capital structure
C. Managing mergers
D. Helping in finalizing take over
E. All the above
Answer» E. All the above
97.

What is the maturity period for senior citizen savings scheme?

A. 3 years
B. 5 years
C. 2 years
D. 7 years
E. 4 years
Answer» B. 5 years
98.

Crossing denotes

A. that the cheque will not be paid across the counter but will be credited to the account of the holder
B. that the cheque cannot be transferred by the payee named therein
C. that the cheque will be paid through clearing only
D. a direction to the paying bank to make payment of the cheque through a bank
E. none of the above
Answer» D. a direction to the paying bank to make payment of the cheque through a bank
99.

Which of the following private banks has signed an agreement with Reliance Jio Money for One-Click payment service ?

A. Laxmi Vilas Bank
B. Federal Bank
C. South Indian Bank
D. Karnataka Bank
E. Karur Vysya Bank
Answer» B. Federal Bank
100.

Who is primarily liable on a cheque?

A. Drawee banker
B. Drawer
C. Payee
D. Collecting banker
E. None of these
Answer» B. Drawer
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