SBI PO Aspirants can check here banking Awareness Questions for practice
1. The banks shall have to state their lending policies. These would include
(A) Exposure limits and eligible borrowers
(B) Documentation standards, maturity and pricing options
(C) Write off review procedures
(D) All the above
(E) None of the above
ANS. (D)
2. Regional Rural Banks are classified as
(A) Scheduled commerce banks
(B) Public sector banks
(C) Cooperative banks
(D) Private sector banks
(E) None of the above
ANS. (A)
3. Export-Import bank of India also operate the following schemes of assistance:
(A)Refinance of export credit to eligible commercial banks in long term posts shipment credits to India’s export of capital goods
(B)Lines of credit to foreign governments and financial institutions for import of Indian capital goods
(C) Re-lending facility to banks situated in foreign countries to enable them to provide term finance to importers of Indian capital goods.
(D)All the above
(E) None of the above.
ANS. (D)
4. As per guidelines of the Reserve bank of India, a new private sector bank
(A) Shall be subject to prudential norms in regard to income recognition asset classification and provisioning capital adequacy etc.
(B) Shall have to observe priority sector lending targets as applicable to other domestic banks
(C) Will be required to open rural and semi-urban branches
(D) All the above
(E) None of the above
ANS. (D)
4. In case of safe custody of articles, relationship between bank and customer is
(A) Agent and Principal
(B) Bailee and Bailor
(C)Lessor and Lessee
(D) Credit and Debitor
(E) None of the above
ANS. (B)
5. Mutual fund schemes have been allowed to mention an indicative return for schemes for fixed income securities. This will be subject to the following:
(A) The return will be based on the current yields of instruments which change from time to time, depending upon the interest rates prevailing in the market, RBI policy and other relevant factors.
(B) In case a portfolio of securities is disclosed, it should also be mentioned that such portfolio is purely illustrative and the scheme does not assure that it would maintain its portfolio
(C) The returns mentioned are only indicative and not assured. The actual returns will be based on the actual NAV which may go up or down depending on the market conditions.
(D) All the above
(E) None of the above
ANS. (D)
6. Some banks have introduced automated cheque book…. Systems, which emboss customers name and account number on every cheque leaf.
(A) issuing
(B)ordering
(C) Personalization and dispensing
(D) embossing
(E) delivery and satisfaction
ANS. (C)
7. Name the certifying authority of digital signature in banking and financial sector
(A) The IDRBT certifying authority
(B) Individual banks
(C) Reserve banks of India
(D) Indian banks association
(E) None of the above
ANS. (A)
8. For opening new branches, banks need to be complied with the following conditions:
(A) Capital adequacy ratio should be at least 8%
(B) Minimum net-owned funds Rs.100crore.
(C) Gross NPA not to exceed 15%
(D) Net profit for 3years consecutively.
(E) All the above
ANS. (E)
9. The corporative credit system, consists of
(A) Short term agricultural credit institutions
(B) Long term agricultural credit institutions
(C)Non-agricultural institutions
(D)All the above
(E) None of the above
ANS. (D)
10. A commercial paper refers to
(A) An unsecured money market instrument issued in the form of promissory note
(B) A paper issued by commercial organization
(C) A secured money market instrument
(D)A letter issued by scheduled commercial banks for seeking refinance from NABARD
(E) None of the above
ANS. (A)
11. The industrial finance corporation of India provides loans to
(A) Government companies of core sector power generation, steel, coal and cement etc.
(B) Newly established industries in backward districts
(C) Industries of private sector
(D) Joint stock companies and cooperative societies engaged in the manufacturing and processing of goods.
(E) None of the above
ANS. (D)
12. Which of the following fall under the qualitative method of credit control adopted by the Reserve Bank of India?
(A) Selective credit control
(B) Moral suasion
(C) Credit authorization scheme
(D) All the above
(E) None of the above
ANS. (D)
13. With regard of NBFCs, which of the following statement is correct?
(A) It cannot offer more than 2% brokerage
(B) It cannot offer gifts
(C) NBFCs seeking public deposit should be a profit making company
(D) All the above
(E) None of the above
ANS. (D)
14. What are the various distribution channels in the banking services?
(A) Physical channel of distribution
(B) Personal channel of distribution
(C) Indirect channel of distribution
(D) Only 1and2
(E) All the above
ANS. (D)
15. Which of the following statement is correct?
(1) The Reserve Bank of India has decided to accept the broad framework of regulations recommended by the Malegam Committee report on micro-finance institutions.
(2) This step is likely to provide a tremendous boost to the micro-finance sector and reaffirm the critical role micro-finance plays in financial inclusion.
(A) only 1
(B) only 2
(C) Both of these
(D) Either 1 or 2
(E) None of the above
ANS. (C)
16. In housing loans, the primary security for the loan is generally
(A) House properly for which loan is granted
(B) Personal guarantee of the borrower
(C) Other property of the borrower
(D) Personal guarantee of third party
(E) None of the above
ANS. (A)
17. The treasury bills are issued at a
(A) Discount
(B) Premium
(C) Both 1and2
(D) Face value
(E) None of the above
ANS. (A)
18. Which of the following are salient features of special electronic fund transfer scheme?
(A) Same day interbank transfer accounts maintained in any of the participating branches are covered that have networking
(B) Settlement for interbank funds transfer takes place in Mumbai.
(C) Scheme is available in over 2500bank branches in 500cities
(D) 3 SEFT settlement cycles on weekdays and 2cycles on Saturday
(E) None of the above
ANS. (E)
19. 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
(E) None of the above
ANS. (C)
20. The Reserve Bank of India is also called the lender of the last resort to scheduled commercial banks because
(A) RBI meets directly or indirectly all the reasonable demands for financial accommodation subject to terms and conditions of the discount rate policy of RBI
(B) They are not able to get facilities from other banks
(C) Both of the above
(D) They are able to get facilities from private sector banks
(E) None of the above
ANS. (A)
21. The interbank messaging part of SFMS is useful for applications like
(A) Electronic Fund Transfer
(B) Real time gross settlement system
(C)Delivery versus payment system
(D) Centralised management system
(E) All of the above
ANS. (E)
22. Merchant bankers which have networth of more than Rs.1crore are allowed by SEBI to function as
(A) Lead managers for issue of shares
(B) Underwriters for issue of shares
(C) Both of the above
(D) Collection of cheques
(E) None of the above
ANS. (C)
24. The term Retail Banking means
(A) Providing services to individuals
(B)Focusing on individual needs for different kinds of financial services
(C) In an integrated manner
(D) All the above
(E) None of the above
ANS. (D)
1. The banks shall have to state their lending policies. These would include
(A) Exposure limits and eligible borrowers
(B) Documentation standards, maturity and pricing options
(C) Write off review procedures
(D) All the above
(E) None of the above
ANS. (D)
2. Regional Rural Banks are classified as
(A) Scheduled commerce banks
(B) Public sector banks
(C) Cooperative banks
(D) Private sector banks
(E) None of the above
ANS. (A)
3. Export-Import bank of India also operate the following schemes of assistance:
(A)Refinance of export credit to eligible commercial banks in long term posts shipment credits to India’s export of capital goods
(B)Lines of credit to foreign governments and financial institutions for import of Indian capital goods
(C) Re-lending facility to banks situated in foreign countries to enable them to provide term finance to importers of Indian capital goods.
(D)All the above
(E) None of the above.
ANS. (D)
4. As per guidelines of the Reserve bank of India, a new private sector bank
(A) Shall be subject to prudential norms in regard to income recognition asset classification and provisioning capital adequacy etc.
(B) Shall have to observe priority sector lending targets as applicable to other domestic banks
(C) Will be required to open rural and semi-urban branches
(D) All the above
(E) None of the above
ANS. (D)
4. In case of safe custody of articles, relationship between bank and customer is
(A) Agent and Principal
(B) Bailee and Bailor
(C)Lessor and Lessee
(D) Credit and Debitor
(E) None of the above
ANS. (B)
5. Mutual fund schemes have been allowed to mention an indicative return for schemes for fixed income securities. This will be subject to the following:
(A) The return will be based on the current yields of instruments which change from time to time, depending upon the interest rates prevailing in the market, RBI policy and other relevant factors.
(B) In case a portfolio of securities is disclosed, it should also be mentioned that such portfolio is purely illustrative and the scheme does not assure that it would maintain its portfolio
(C) The returns mentioned are only indicative and not assured. The actual returns will be based on the actual NAV which may go up or down depending on the market conditions.
(D) All the above
(E) None of the above
ANS. (D)
6. Some banks have introduced automated cheque book…. Systems, which emboss customers name and account number on every cheque leaf.
(A) issuing
(B)ordering
(C) Personalization and dispensing
(D) embossing
(E) delivery and satisfaction
ANS. (C)
7. Name the certifying authority of digital signature in banking and financial sector
(A) The IDRBT certifying authority
(B) Individual banks
(C) Reserve banks of India
(D) Indian banks association
(E) None of the above
ANS. (A)
8. For opening new branches, banks need to be complied with the following conditions:
(A) Capital adequacy ratio should be at least 8%
(B) Minimum net-owned funds Rs.100crore.
(C) Gross NPA not to exceed 15%
(D) Net profit for 3years consecutively.
(E) All the above
ANS. (E)
9. The corporative credit system, consists of
(A) Short term agricultural credit institutions
(B) Long term agricultural credit institutions
(C)Non-agricultural institutions
(D)All the above
(E) None of the above
ANS. (D)
10. A commercial paper refers to
(A) An unsecured money market instrument issued in the form of promissory note
(B) A paper issued by commercial organization
(C) A secured money market instrument
(D)A letter issued by scheduled commercial banks for seeking refinance from NABARD
(E) None of the above
ANS. (A)
11. The industrial finance corporation of India provides loans to
(A) Government companies of core sector power generation, steel, coal and cement etc.
(B) Newly established industries in backward districts
(C) Industries of private sector
(D) Joint stock companies and cooperative societies engaged in the manufacturing and processing of goods.
(E) None of the above
ANS. (D)
12. Which of the following fall under the qualitative method of credit control adopted by the Reserve Bank of India?
(A) Selective credit control
(B) Moral suasion
(C) Credit authorization scheme
(D) All the above
(E) None of the above
ANS. (D)
13. With regard of NBFCs, which of the following statement is correct?
(A) It cannot offer more than 2% brokerage
(B) It cannot offer gifts
(C) NBFCs seeking public deposit should be a profit making company
(D) All the above
(E) None of the above
ANS. (D)
14. What are the various distribution channels in the banking services?
(A) Physical channel of distribution
(B) Personal channel of distribution
(C) Indirect channel of distribution
(D) Only 1and2
(E) All the above
ANS. (D)
15. Which of the following statement is correct?
(1) The Reserve Bank of India has decided to accept the broad framework of regulations recommended by the Malegam Committee report on micro-finance institutions.
(2) This step is likely to provide a tremendous boost to the micro-finance sector and reaffirm the critical role micro-finance plays in financial inclusion.
(A) only 1
(B) only 2
(C) Both of these
(D) Either 1 or 2
(E) None of the above
ANS. (C)
16. In housing loans, the primary security for the loan is generally
(A) House properly for which loan is granted
(B) Personal guarantee of the borrower
(C) Other property of the borrower
(D) Personal guarantee of third party
(E) None of the above
ANS. (A)
17. The treasury bills are issued at a
(A) Discount
(B) Premium
(C) Both 1and2
(D) Face value
(E) None of the above
ANS. (A)
18. Which of the following are salient features of special electronic fund transfer scheme?
(A) Same day interbank transfer accounts maintained in any of the participating branches are covered that have networking
(B) Settlement for interbank funds transfer takes place in Mumbai.
(C) Scheme is available in over 2500bank branches in 500cities
(D) 3 SEFT settlement cycles on weekdays and 2cycles on Saturday
(E) None of the above
ANS. (E)
19. 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
(E) None of the above
ANS. (C)
20. The Reserve Bank of India is also called the lender of the last resort to scheduled commercial banks because
(A) RBI meets directly or indirectly all the reasonable demands for financial accommodation subject to terms and conditions of the discount rate policy of RBI
(B) They are not able to get facilities from other banks
(C) Both of the above
(D) They are able to get facilities from private sector banks
(E) None of the above
ANS. (A)
21. The interbank messaging part of SFMS is useful for applications like
(A) Electronic Fund Transfer
(B) Real time gross settlement system
(C)Delivery versus payment system
(D) Centralised management system
(E) All of the above
ANS. (E)
22. Merchant bankers which have networth of more than Rs.1crore are allowed by SEBI to function as
(A) Lead managers for issue of shares
(B) Underwriters for issue of shares
(C) Both of the above
(D) Collection of cheques
(E) None of the above
ANS. (C)
24. The term Retail Banking means
(A) Providing services to individuals
(B)Focusing on individual needs for different kinds of financial services
(C) In an integrated manner
(D) All the above
(E) None of the above
ANS. (D)
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