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1500+ Banking Awareness Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Common Topics in Competitive and Entrance exams .

351.

A is an institution which accepts deposits, makes business loans and other related services

A. Development bank
B. Savings bank
C. Commercial bank
D. Indigenous bank
E. Local area bank
Answer» C. Commercial bank
352.

In which of the public sector bank, government decided to take a move to lower its stake below 51%?

A. IDBI Bank
B. Bhartiya Mahila Bank
C. Vijaya Bank
D. EXIM Bank
E. OBC Bank
Answer» A. IDBI Bank
353.

The initial public offer is connected to which among the following:

A. Primary market
B. Secondary market
C. Old issues market
D. gilt edged securities market
E. None of the above
Answer» A. Primary market
354.

Name the mobile app started by SBI to stop the debit card details whereby the customer can activate or deactivate its debit card by just sending an SMS?

A. SBI Debit
B. SBI SMS
C. SBI Quick
D. SBI Flip
E. SBI Deact
Answer» C. SBI Quick
355.

The industries securities market refers to the market which deals in:

A. Equities
B. Debentures
C. Treasury bills
D. Commercial paper
E. Only (a) and (b) as above
Answer» E. Only (a) and (b) as above
356.

According to a report, India replaced China as top destination for foreign direct investment in 2015 by attracting how much worth of FDI projects?

A. $57 billion
B. $68 billion
C. $53 billion
D. $63 billion
E. $50 billion
Answer» D. $63 billion
357.

Which state owned bank has become the top mobiliser under Gold Monetization Scheme, launched by Modi government?

A. Bank of Baroda
B. State Bank of India
C. Punjab National Bank
D. Central Bank of India
E. Bank of India
Answer» C. Punjab National Bank
358.

Which among the following is short term borrowings for any firm?

A. Debentures
B. Shares
C. Long term loans availed from banks
D. Subordinated borrowings
E. Sundry creditors
Answer» E. Sundry creditors
359.

The Imperial Bank of India was renamed as?

A. Reserve Bank of India
B. IDBI
C. Union Bank of India
D. State Bank of India
E. None of these
Answer» D. State Bank of India
360.

Find the odd man out when it comes to sanctioning of loans to a customer?

A. Borrowing
B. Lending
C. Advancing
D. Procuring
E. Extending credit
Answer» D. Procuring
361.

SBI Day is observed on                    

A. April 1
B. May 1
C. June 5
D. July 1
E. None of these
Answer» D. July 1
362.

What do you mean by RIDF?

A. Rural India development fund
B. Rural Infrastructure development fund
C. Rural Innovative development fund
D. Rural Industrial development fund
E. none of the above
Answer» B. Rural Infrastructure development fund
363.

India became the country in the world to have a bank especially for women.

A. 7
B. 6
C. 5
D. 3
E. None of these
Answer» D. 3
364.

When it comes to electronic banking which among the following are not coming under the purview of electronic banking?

A. Debit cards
B. credit cards
C. mobile banking
D. safe deposit locker
E. internet banking
Answer» D. safe deposit locker
365.

Which of the following is the purpose of introducing ―Know Your Customer‖ norms by the banks?

A. Identifying people who do not pay Income Tax
B. To bring more and more people under the banking net
C. To ensure that the money deposited in banks has come from genuine sources
D. None of the Above
E. Both a) and b)
Answer» C. To ensure that the money deposited in banks has come from genuine sources
366.

The returned non resident Indians are permitted to open the following accounts:

A. Non resident external account
B. Non resident ordinary account
C. RFC account
D. FCNR account
E. none of the above
Answer» C. RFC account
367.

Financial instruments provided short term and they include

A. Commercial paper
B. Hundi
C. Certificates of deposits
D. Promissory notes
E. All the above
Answer» E. All the above
368.

Government has infused Rs 2,229 crore into which public sector bank in lieu of preferential allotment of shares?

A. Bandhan Bank
B. IDBI
C. Canara Bank
D. SBI
E. None of these
Answer» B. IDBI
369.

A depositor can deposit his funds  any number of times he likes and can also withdraw the same any number of times he wishes

A. Savings bank
B. current account
C. recurring deposit
D. both (a) and (b)
E. none of the above
Answer» D. both (a) and (b)
370.

Which bank has earmarked Rs 20 crore to support employees who were affected by the floods in Chennai?

A. HSBC
B. Doha Bank
C. Royal Bank of Scotland
D. None of these
E. All of the above
Answer» C. Royal Bank of Scotland
371.

When it comes to unorganized sector, which among the following is not true?

A. Indigenous bankers
B. Money lenders
C. Chit funds
D. Nidhis
E. Cooperative bank
Answer» E. Cooperative bank
372.

Disha Microfin and , will merge expecting the combination to help them launch a stronger small finance bank.

A. Muthoot Finance
B. Bajaj Finance
C. Future Financial Services
D. All of the above
E. None of these
Answer» C. Future Financial Services
373.

Banks borrow in this money market for the following purposes:

A. To fill the gaps in temporary mismatches in funds
B. To meet the cash reserve ratio and statutory reserve ratio – the mandatory requirements as stipulated by RBI
C. To meet sudden demand for funds arising out of larger outflows
D. All the above
E. none of the above
Answer» D. All the above
374.

The Deposit Insurance Credit Guarantee Scheme was formed on ?

A. July 1, 1975
B. January 1, 1952
C. January 1, 1962
D. January 1, 1991
E. None of the above
Answer» C. January 1, 1962
375.

According to RBI guidelines the term ‗bulk deposit‘ is used for single rupee term deposit of

A. Rs. 1 crore and above
B. Rs, 25 lakh and above
C. Rs, 75 lakh and above
D. Rs, 50 lakh and above
E. Rs, 15 lakh and above
Answer» A. Rs. 1 crore and above
376.

The currency notes issued by Reserve Bank of India are under the signature of ?

A. President of India
B. Dy. Governor
C. Governor
D. Secretary, Finance Ministry
E. None of the above
Answer» C. Governor
377.

The Minimum Net Owned Fund for NBFC- MFIs registered in the North Eastern Region of the country is                    

A. Rs.5 crore
B. Rs.4 crore
C. Rs.3 crore
D. Rs.2 crore
E. None of the Above
Answer» D. Rs.2 crore
378.

The Lead Bank Scheme was introduced in the year ?

A. 1968
B. 1969
C. 1974
D. 1976
E. None of the above
Answer» B. 1969
379.

In SNRR Account, SNRR stands for

A. Statutory Non Resident Rupee
B. Single Non Resident Rupee
C. Statutory Non Reflex Rupee
D. Single Non Resident Rupee
E. Special Non Resident Rupee
Answer» E. Special Non Resident Rupee
380.

Who pays commission to banks for conducting Government business?

A. Government of India
B. State Government
C. RBI
D. Central and State Governments
E. None of the above
Answer» C. RBI
381.

We can open a saving bank account in the sole name of a minor if he completes age of ?

A. 6
B. 10
C. 18
D. 21
E. None of the above
Answer» B. 10
382.

The IMGC is the sole provider of mortgage guarantor for housing finance in India. The alphabet ―I‖ in the abbreviation IMGC stands for                 

A. India
B. Institute
C. Internal
D. Informative
E. International
Answer» A. India
383.

Banks are increasingly selling Insurance products mainly due to ?

A. It helps in increase in deposits of a bank
B. It helps in growing Loan portfolio of a bank
C. It helps increase commission income of a bank
D. It diversify the risk of a Bank
E. Bank have taken over Insurance companies
Answer» C. It helps increase commission income of a bank
384.

A collection of non-bank financial intermediaries that provide services similar to traditional commercial banks is known as

A. Off-shore Banking
B. Investment Banking System
C. Shadow Banking System
D. Conventional Banking
E. Merchant Banking System
Answer» C. Shadow Banking System
385.

The term ―Bancassurance‖ means _?

A. Assurance of quality services by the Bank
B. Selling of Insurance products by Banks
C. Selling of Third party Mutual Funds Products
D. Selling of Add-on Banking Services
E. Selling of Credit Cards
Answer» B. Selling of Insurance products by Banks
386.

The national agency mandated to control, analyse and disseminate Suspicious Transaction Reports(STR), Cash Transaction Reports and counterfeit currency reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries is                  

A. RBI
B. Financial Intelligence Unit(FIU)
C. Intelligence Bureau(IB)
D. Central Bureau of Investigation(CBI)
E. Central Intelligence Unit(CIU)
Answer» B. Financial Intelligence Unit(FIU)
387.

The Lead Bank Scheme was introduced on the basis of recommendations of ?

A. Reserve Bank
B. NABARD
C. Study group appointed by National Credit Council under the chairmanship of Prof. D. R. Gadgil
D. SIDBI
E. None of the above
Answer» C. Study group appointed by National Credit Council under the chairmanship of Prof. D. R. Gadgil
388.

An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) with Minimum Net Owned Funds of                  

A. Rs.5 crore
B. Rs.4 crore
C. Rs.3 crore
D. Rs.2 crore
E. None of the Above
Answer» A. Rs.5 crore
389.

At present, the maximum interest a bank offers on Saving bank account is ?

A. 3.50%
B. 5%
C. 7%
D. As per bank policy, as the Interest rate on Savings account is deregulated
E. None of the above
Answer» D. As per bank policy, as the Interest rate on Savings account is deregulated
390.

The ―Stand Up India‖ is aimed at promoting entrepreneurship among women and scheduled castes and tribes. The bank loans under the scheme shall be referenced to _             

A. SIDBI
B. NABARD
C. RBI
D. MUDRA
E. DRDA
Answer» A. SIDBI
391.

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
Answer» D. Entry load
392.

Which of the following is not classified as a Commercial Bank?

A. Public Sector Bank
B. Foreign Bank
C. Private Sector Bank
D. Regional Rural Bank
E. Urban Cooperative Bank
Answer» E. Urban Cooperative Bank
393.

SHCIL was established in 1986 under the Government of India as                      

A. Private Ltd
B. Public Ltd
C. Limited Liability Partnership
D. Unlimited company
E. None of the Above
Answer» B. Public Ltd
394.

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)
395.

The ratio of deposits to loans of a bank is known as                

A. NPA coverage Ratio
B. Return on asset ratio
C. Asset Coverage ratio
D. CD Ratio
E. Other than those given as options
Answer» E. Other than those given as options
396.

In International Banking terms,‖Appreciation‖ of Rupee means _

A. Excess of exports over imports
B. Purchasing power of rupee has come down
C. Availability of less foreign currency vis-a-vis rupee
D. Excess of imports over exports
E. Availability of more foreign currency vis-a-vis rupee
Answer» C. Availability of less foreign currency vis-a-vis rupee
397.

Aadhar Housing Finance Ltd is going to be merged with which of the following?

A. DHFL Vysya Housing Finance Ltd
B. Cent Bank Home Finance Limited
C. Housing and Urban Development Corporation Ltd.
D. Manipal Housing Finance Syndicate Ltd.
E. None of these
Answer» A. DHFL Vysya Housing Finance Ltd
398.

Which of the following banks has planned to commence urban microfinance operations in its 85 branches across the country?

A. Yes Bank
B. Kotak Mahindra Bank
C. ICICI Bank
D. Axis Bank
E. None of these
Answer» D. Axis Bank
399.

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
E. None of these
Answer» A. Statutory Liquidity Ratio (SLR)
400.

According to a news, the State Bank of India was being put in ―Hall of Shame‖ list along with some other banks. The reason for this was

A. for not recovering the NPAs in the last 6 months
B. for financing a US cluster bomb manufacturer
C. for supporting Vijay Malaya
D. it listed the worst NPAs ever the last quarter
E. None of these
Answer» B. for financing a US cluster bomb manufacturer

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